Sunovion Settles Patent Dispute With Mylan Over Brovana

Mylan Inc. settled a patent dispute with Sunovion Pharmaceuticals Inc. over the bronchitis and emphysema drug Brovana less than a week before a trial was set to begin.

Sunovion, based in Marlborough, Massachusetts, acknowledged that Brovana infringed two patents owned by Mylan, according to an order filed today by U.S. District Judge John Koeltl in Manhattan. The companies have entered into a licensing agreement as part of the settlement. Other terms of the agreement weren’t disclosed.

“Sunovion acknowledges that its making, using, offering to sell and selling of Brovana infringes asserted claims” of the two Mylan patents, according to the order.

Koeltl on March 1 invalidated five of the seven patents that Canonsburg, Pennsylvania-based Mylan said were infringed and limited damages that could be assessed on the other two patents. A jury trial scheduled to begin May 21 was put off until May 29. The two Mylan patents expire in June 2021.

Mylan’s Dey unit sued Sunovion’s predecessor company in 2007 to block the introduction of Brovana, which Dey said infringed a patent for a spray to open bronchial passages. Other patents were later added to the suit.

Brovana, which uses a variant of the compound formoterol, treats the condition formally known as chronic obstructive pulmonary disease. Dey sells Perforomist to treat the disease.

‘Remain Confident’

“We are pleased with this settlement and remain confident in the intellectual property protecting Perforomist, as well as our combination product for the treatment of chronic obstructive pulmonary disease, currently in development,” Heather Bresch, Mylan’s chief executive officer, said in a statement today.

Patricia Moriarty, a spokeswoman for Sunovion, didn’t immediately return messages seeking comment on the settlement.

Mylan said in its statement that it will appeal the judge’s ruling on the other patents.

Mylan rose 39 cents, or 1.87 percent, to $21.28 in Nasdaq Stock Market trading (MYL).

Sunovion is a unit of Osaka, Japan-based Dainippon Sumitomo Pharma Co. Ltd., which climbed 15 yen, or 2.1 percent, to 747 yen in Tokyo Stock Market trading.

The case is Dey v. Sepracor, 1:07-cv-02353, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Don Jeffrey in New York at  djeffrey1@bloomberg.net.

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