Shire wins trial over ulcerative colitis drug

Shares in Shire have leapt after it announced Thursday evening that it had won a patent trial against Watson Laboratories over Lialda, one of its treatments for ulcerative colitis.

The group's subsidiary, Shire Developments, brought the litigation against the Florida-based firm which led to a five-day trial, the result of which was the judge confirming that Shire is entitled to an injunction, which he will issue separately.

The injunction prohibits the Food and Drug Association from approving the abbreviated new drug application (ANDA) formulation until the expiration of Shire's '720 patent in 2020.

In 2012 Lialda contributed $400m to Shire's sales, equal to 8.6% of its revenue, data from Bloomberg has shown.

"Shire is very pleased that the court has ruled in our favor. We rely on our patents to be able to continue to invest in therapies that bring value to our patients and their caregivers. This ruling supports the innovative therapies that we develop in order to improve the lives of ulcerative colitis patients," Roger Adsett, the head of Shire's GI Business Unit, said.

The share price leapt 5.33% to 2,037p by 09:00 Friday.

NR