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Cephalon Wins Patent Suit Against Watson

Court upheld one of the patent's supporting Cephalon's drug Fentora, preventing competitor Watson Pharmaceuticals from selling a generic version.

NEW YORK (AP) -- A U.S. District Court upheld one of the patent's supporting Cephalon Inc.'s drug Fentora, preventing competitor Watson Pharmaceuticals Inc. from selling a generic version of the powerful painkiller.

Cephalon and Watson said the U.S. District Court for the District of Delaware ruled that Watson's generic version infringed on a patent upheld by Cephalon. Earlier this month the same court ruled in Watson's favor and overturned two other patents on Fentora. If the court had overturned the third patent, it would have cleared the way for Watson and other companies to start selling low-cost generics, eroding Cephalon's sales.

Watson, of Morristown, N.J., also asked the court to overturn an injunction that prevented it from marketing its generic. Cephalon, of Frazer, Pa., said Thursday that the court denied Watson's request.

Watson said Friday it is reviewing the court's decision and will consider all options, including a possible appeal. The Food and Drug Administration approved Watson's generic version of Fentora, or fentanyl tablets, in January.

Fentora is a powerful pain drug that is used to treat extreme pain in cancer patients. The drug was approved in September 2006, and Cephalon reported $131.6 million in U.S. sales of the drug in 2010. Cephalon sued Watson over its proposed generic in 2008.

Teva Pharmaceutical Industries Ltd. is expected to start selling a generic version of Fentora in October 2018 as part of a previous legal settlement with Cephalon, although if another company brings a generic to the market before that time, Teva will be allowed to do the same. The patents on the drug are scheduled to expire in 2019.

Cephalon shares edged up 45 cents to $57.74 in morning trading, and Watson stock declined 3 cents to $55.35.