EU Court Upholds EUR 13.96 Million Fine on Ipca Laboratories over Patent Dispute

Ipca Laboratories Ltd is facing a significant fine from an EU court, which upheld a EUR 13.96 million penalty related to a patent dispute involving its subsidiaries Unichem Laboratories and Niche Generics. The dispute centers on a settlement agreement for Perindopril, a drug developed by the French company Servier.

In a significant legal development, Ipca Laboratories Ltd on Thursday revealed that an EU court has upheld a hefty fine amounting to EUR 13.96 million (approx. Rs 125.62 crore) imposed on its subsidiaries, Unichem Laboratories and Niche Generics. This stems from a controversial patent dispute settlement agreement.

The Court of Justice of the EU's decision came after the General Court of the EU collectively penalized Unichem Laboratories and Niche Generics for their agreement with the Servier group about the Perindopril drug, used for treating hypertension and heart failure. Servier's parent company, Servier SAS, had initially obtained the patent in 2004.

Despite numerous challenges to the patent's validity from multiple companies, including Unichem and Niche, the Servier group secured various settlement agreements. However, allegations surfaced accusing Unichem and Niche of breaching EU competition law by settling the patent dispute. Ipca Labs confirmed there would be no substantial operational impact, as provisions for the fine were already made in their accounts.

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