Warner Chilcott (WCRX) Says Generic Doryx Doesn't Violate '161 Patent, Sees FY12 Impairment Charge of $90-$108M

April 30, 2012 5:49 PM EDT
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Warner Chilcott plc (Nasdaq: WCRX) today announced that the U.S. District Court for the District of New Jersey upheld the validity of the U.S. patent covering the Company's DORYX 150 mg product, but determined that neither Mylan Inc.'s (NYSE: MYL) nor Impax Pharmaceuticals, Inc.'s (Nasdaq: IPXL) proposed generic version of the DORYX 150 mg product infringed the '161 Patent. As a result of the Court's ruling, the Company believes that Mylan has entered the market with its FDA approved generic equivalent of the Company's DORYX 150 mg product. The Company is reviewing the Court's decision, and intends to appeal the non-infringement determinations.

Sees a FY12 impairment charge in the range of $90-$108 million related to its DORYX intangible asset. This charge is expected to materially reduce the Company's 2012 GAAP net income. In addition, the Company is reviewing Mylan's claims for damages resulting from the issuance of the temporary restraining order. An estimate of the range of potential loss, if any, resulting from such claims is not possible at this time.

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