EU Court Upholds Fine on Ipca Subsidiaries

New Delhi, Jun 27 (PTI) Ipca Laboratories Ltd on Thursday said a European Union court has upheld a fine of EUR 13.96 million (approximately Rs 125.62 crore) collectively on its arm Unichem Laboratories and step-down subsidiary Niche Generics over a patent dispute settlement agreement.

The Court of Justice of the EU has upheld the fine of EUR 13.96 million (approximately Rs 125.62 crore) imposed by the General Court of the EU collectively on Unichem Laboratories Ltd and step-down subsidiary Niche Generics Ltd with respect to a patent dispute settlement agreement done by them for Perindopril drug matter with the innovator French company Servier group, Ipca Labs said in a regulatory filing.

The Servier group, whose parent company Servier SAS developed Perindropil, a medicine used in the treatment of hypertension and heart failure, obtained a patent in 2004.

Following disputes in which the validity of the patent was challenged by many companies, including Unichem/Niche, Servier entered into various settlement agreements with a number of generic companies, including Unichem and Niche, to settle the patent dispute, the filing said.

However, it was alleged that Unichem and Niche had acted in breach of EU competition law by agreeing to settle a patent dispute with Laboratories Servier, the company said.

There would be no material impact on the operations of the company, Ipca Labs said, adding that it and Unichem have already made provision of Rs 125.62 crore in its book of accounts in respect of this litigation.