Dr Reddy's Laboratories lost the patent infringement suit filed by Eli Lilly for its US Patent No. 5,229,382 relating to Zyprexa in the United States District Court for the Southern District of Indiana. The court found Lilly's the patent to be valid.

The court decision arises from a May 2001 suit filed by Eli Lilly against DRL alleging patent infringement on the 382 compound patent listed on the Orange Book. The trial was completed in April 2004. Zyprexa is Eli Lilly's $ 4.4 billion / year schizophrenic drug.

GV Prasad, CEO of Dr Reddy's Laboratories, said, "We are disappointed by the court decision and will appeal this decision to the Federal Circuit. Despite today's adverse ruling, our strategy remains unchanged and we continue to make consistent progress towards building a sustainable generics business in the US."

As of December 31, 2004, Dr. Reddy's ANDA pipeline comprises 39 ANDAs pending approval with the US Food and Drug Administration.