Dr Reddy's Laboratories on Thursday said that in response to the company's motion for summary judgement on the willful infringement claim in the Olanzapine patent challenge, Eli Lilly & Co had agreed to dismiss with prejudice its claim of willful infringement. In a press release, the company said Dr Reddy's had agreed to dismiss certain defences or counter-claims related to the patent statute 35 USC 112, including specific defences related to enablement and indefiniteness.

The trial over the validity of Eli Lilly's compound patent is set to begin on January 26, 2004, in the US District Court for the Southern District of Indiania. In 2001, Dr Reddy's filed an ANDA for Olanzapine tablets 5,10,15 and 20 mg dosage strengths. Dr Reddy's believes it has the first to file status on the 20 mg dosage strength.

Olanzapine is the generic version of Eli Lilly's Zyprexa and is indicated for the management of the manifestation of psychotic disorders. The brand has annual sales in the US of approximately $ 2.8 billion.