Novartis AG v Hospira UK Ltd

Novartis AG v Hospira UK Ltd

The appeal had real prospects of success and the balance of unquantifiable harm favoured Novartis, as the damage from price erosion and loss of monopoly was more certain and greater than Hospira’s risk of losing first mover advantage. The trial judgment did not justify tipping the balance against Novartis, and the generic manufacturer must clear all patent obstacles before launch, including pending appeals.

Parties
Appellant: Novartis AG; Respondent: Hospira UK Limited
Jurisdiction
England and Wales
Judgment Date
22 May 2013
Procedural Posture
Civil Appeal / Appeal From Refusal of Interim Injunction Pending Appeal
Outcome
appeal allowed
Legal Topics
Interim Injunctions, Patent Validity, Balance of Convenience, Appeal Pending Judgment
Intellectual Property Pharmaceutical Law Interim Injunctions Patent Validity Balance of Convenience Appeal Pending Judgment

Case Brief

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Parties

Novartis AG

Appellant

Hospira UK Limited

Respondent

Procedural Posture

Civil Appeal / Appeal From Refusal of Interim Injunction Pending Appeal

Legal Issues

  1. 1 Whether interim injunctive relief should be granted pending appeal when the patent has been held invalid
  2. 2 Whether the balance of convenience favours granting an injunction to restrain launch of a generic drug

Ratio Decidendi

The appeal had real prospects of success and the balance of unquantifiable harm favoured Novartis, as the damage from price erosion and loss of monopoly was more certain and greater than Hospira’s risk of losing first mover advantage. The trial judgment did not justify tipping the balance against Novartis, and the generic manufacturer must clear all patent obstacles before launch, including pending appeals.

Court Disposition

appeal allowed

Orders

  • interim injunction granted restraining Hospira from selling its product pending final judgment in the appeal or further order