Cipla, the third largest pharmaceutical company in India, has lost patent case in US and the share closed lower at Rs 330.35 on BSE.  The US District Court for the Middle District of Georgia ruled that Merial's US patent covering Frontline Plus is valid and the PetArmor Plus products infringe the patent. Merial is a Sanofi company.

Sanofi in its press realised said that the court ruled that both pet health companies Cipla Ltd. and Velcera Inc. were aware that their sales of PetArmor Plus products infringed Merial’s patent and barred those 2 companies from further sales of these products in the US The court ordered the seizure of any existing inventory in the US Judge Land found Cipla in contempt of a March 6, 2008 order prohibiting Cipla from infringing Merial’s patents covering Frontline Plus brand flea and tick control products.

Judge Land further stated that he will conduct a hearing to determine an award to Merial for damages, as well as the amount of monetary sanctions, including attorney's fees and costs, that may be appropriate based upon Velcera and Cipla's violation of the court's order. The judge stayed his order from taking effect for 60 days to permit appeal.

"We are pleased that the court recognized the 'contumacious' nature of Velcera and Cipla's conduct and prevented them from further violating Merial's intellectual property rights," said Merial executive chairman, José Barella. "Merial has invested considerable time and resources developing its flagship Frontline Plus products, and is confident that Judge Land's well-reasoned order will be affirmed. Merial is committed to continuing its support of the veterinary profession and will continue to vigorously enforce its patents covering Frontline Plus products.”

Frontline Plus is proven to effectively kill 100% of fleas within 12 hours of application and continues to provide fast-acting, long-lasting flea and tick control. Frontline Plus also breaks the flea life cycle to prevent future infestations. Frontline, which was first launched in 1994 is the world’s best selling flea and tick treatment for dogs and cats.