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.

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.

Advertisement - Article continues below

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.




Investment strategy

Broker safety – your questions answered

Cris Sholto Heaton answers more of your questions about the safety of stockbroker accounts
25 Mar 2020
Investment strategy

How demographics affects stock valuations

New research suggests that stock and bond valuations are driven by the age of the population – at least in the US.
24 Feb 2020
Stocks and shares

Do you own shares in Sirius Minerals? Here’s what you need to do now

Mining giant Anglo American has proposed a cash takeover of Yorkshire-based minnow Sirius Minerals. Unhappy shareholders must decide whether to accept…
20 Feb 2020

Why investors should be “cautiously bullish” for 2020

Analysts have been out in force making rosy predictions for stockmarkets in 2020, but while there is certainly a case for optimism, investors should r…
17 Jan 2020

Most Popular

UK Economy

What bounce back loans can tell us about how we’ll pay for all this

The government will guarantee emergency "bounce back loans" for small businesses hit by Covid-19. Inevitably, many businesses will default. And there'…
1 Jun 2020

This looks like the biggest opportunity in today’s markets

With low interest rates and constant money-printing, most assets have become expensive. But one major asset class hasn’t. John Stepek explains why com…
2 Jun 2020
Global Economy

The MoneyWeek Podcast: James Ferguson on the virus, the lockdown, and what comes next

Merryn talks to MoneyWeek regular James Ferguson of Macrostrategy Partnership about what's happened so far with the virus; whether the lockdown was th…
28 May 2020