Novartis will keep defending its intellectual property rights for the antiviral medicine Famvir, which has various US patents valid until 2015, after a competitor company launched its own generic version in the United States.

The launch by Teva Pharmaceuticals, announced on September 7, is considered "at risk" since the two companies are involved in patent infringement litigation, which began in 2005. Teva risks potentially significant damages if Novartis prevails in litigation. A trial date has not been set. Teva launched this product after the US district court in Newark, New Jersey, denied on September 5 a request for a preliminary injunction.

The worldwide rights to Famvir, which had 2006 net sales of USD 166 million in the US, was acquired in December 2001. As a result of Teva's actions, a one-time accounting charge will be taken in the 2007 third quarter for the impairment of intangible assets, and it is expected to be in range of USD 250 million to USD 300 million.

Novartis reaffirms its outlook for record operating and net income from continuing operations in 2007 as well as for mid-single-digit growth in net sales for Group continuing operations and for low-single-digit growth in the Pharmaceuticals Division, both in local currencies.