Corporate Results of over 2500 companies Saturday, October 23, 1999
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Glaxo Wellcome, Pfizer drag Dr Reddy's to court over patent violation in Russia 

Anju Ghangurde  
Mumbai, Oct 22: British multinational Glaxo Wellcome Plc and American healthcare giant Pfizer Inc have filed separate patent infringement suits against Dr Reddy's Laboratories (DRL) for two products, ondansetron and amlodipine, in the Russian market.

Indications are that the initial court rulings have gone against DRL, though the Hyderabad-based company will appeal against the verdict.

DRL's official spokesperson told The Financial Express, "The court cases are a routine and ongoing process. The decision is not a final one as we are appealing against it. This has had no impact on our operations. Our sales in Russia are continuing".

The DRL brands involved are Ocetron (ondansetron) and Stamlo (amlodipine) respectively, though details on the nature of infringement and the scope of ruling could not be ascertained.

Industry analysts were, however, more cautious on their outlook. "Any patent infringement suit means lengthy proceedings and significant spendings on the suit itself. It would be difficult to assume that there would no impact on DRL's export earnings, though suits of this nature are normal in patent-protected markets," an analyst with a leading foreign brokerage firm said.

Another analyst said the four major products including Omez, Stamlo Ciprolet and Enam account for chunk of the formulation sales in the Russian market. "With several new products under registration, DRL may be cushioned against any negative outcome, at least in the interim" he said.

DRL's latest annual report says that nothwithstanding the Russian crisis, the company continues to be committed to the Russian and Central Asian operations.

The company also says that it has capitalised on the lessons that it learnt in Russia. "Having become familiar with the pitfalls of international business management, the company has remodelled its overseas strategy. The sales-driven approach gave way to one that aimed at a long-term commitment and at creating brand equity. Some of the brands that became leaders in the process are Omez, Enam, Ciprolet Ketorol and Stamlo," the report adds.

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