Napp Pharmaceutical Holdings Ltd v Dr Reddy's Laboratories (UK) Ltd & Ors [2017] EWHC 1433 (Pat) (08 June 2017)

Napp Pharmaceutical Holdings Ltd v Dr Reddy's Laboratories (UK) Ltd & Ors [2017] EWHC 1433 (Pat) (08 June 2017)

Sandoz must provide further information regarding the relationship between group companies, the basis for claimed losses, the calculations underlying sales volumes, and the specific profit margins and pricing used in their damages claim. Confidentiality concerns do not justify withholding this information, as confidentiality arrangements are in place. Cost budgeting is not ordered at this stage, but the parties must exchange statements of incurred and estimated costs after pleadings close, with the possibility of revisiting cost budgeting later.

Citation
[2017] EWHC 1433 (Pat)
Parties
Claimant / Respondent: Napp Pharmaceutical Holdings Limited; First Defendant: Dr Reddy's Laboratories (UK) Limited; Second Defendant / Applicant: Sandoz Limited; Additional Applicant: Hexal AG; Additional Applicant: Salutas Pharma GmbH; Additional Applicant: Sandoz AG
Jurisdiction
England and Wales
Judgment Date
08 June 2017
Procedural Posture
Patent Damages Inquiry (cross Undertaking) / Interlocutory Application for Further Information and Case Management Directions
Outcome
Application granted in part
Legal Topics
Patent Infringement, Damages Inquiry, Cross Undertaking in Damages, Requests for Further Information, Cost Budgeting
Intellectual Property Civil Procedure Patent Infringement Damages Inquiry Cross Undertaking in Damages Requests for Further Information Cost Budgeting

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Parties

Napp Pharmaceutical Holdings Limited

Claimant / Respondent

Dr Reddy's Laboratories (UK) Limited

First Defendant

Sandoz Limited

Second Defendant / Applicant

Hexal AG

Additional Applicant

Salutas Pharma GmbH

Additional Applicant

Sandoz AG

Additional Applicant

Procedural Posture

Patent Damages Inquiry (cross Undertaking) / Interlocutory Application for Further Information and Case Management Directions

Legal Issues

  1. 1 Whether Sandoz must provide further information regarding profit margins, pricing, and basis of damages calculation in the damages inquiry on a cross-undertaking
  2. 2 Whether cost budgeting should be ordered in a high-value patent damages inquiry

Ratio Decidendi

Sandoz must provide further information regarding the relationship between group companies, the basis for claimed losses, the calculations underlying sales volumes, and the specific profit margins and pricing used in their damages claim. Confidentiality concerns do not justify withholding this information, as confidentiality arrangements are in place. Cost budgeting is not ordered at this stage, but the parties must exchange statements of incurred and estimated costs after pleadings close, with the possibility of revisiting cost budgeting later.

Court Disposition

Application granted in part

Orders

  • Sandoz to provide further information regarding group company relationships, basis of loss, calculations for sales volumes, and specific profit margins and pricing used in damages claim.
  • Sandoz to provide the terminal value calculation and explain the basis for the discount rate used.