Pfizer Emerges Victorious in China Viagra Patent Battle

Following a six year legal battle, Pfizer Inc. (NYSE: PFE) has successfully defended its Chinese patent on the erectile dysfunction drug Viagra. As reported in Chinese in the 21st Century Economic Report on Nov. 1, the Beijing High People's Court has issued a final judgment on the patent dispute. Rejecting a patent challenge from 12 domestic drug manufacturers, the high court's final judgment grants Pfizer patent protection on Viagra until 2014.

Pfizer initially filed a Chinese patent application in May 1994 for the use of Sildenafil (Viagra) in the treatment of erectile dysfunction treatment.

After seven years of investigation, the China State Intellectual Property Office [SIPO] granted the patent in 2001. The patent was challenged by 12 domestic Chinese drug companies that claimed to have invested over US$12 million to produce generic versions of the drug.In July of 2004, SIPO's Patent Review Bureau invalidated Pfizer's patent. The rejection was based on a claimed lack of data in the application to support Viagra's specific therapeutic effect. The ruling sparked international attention and became a high profile test case for China's commitment to the protection of intellectual property rights.

Pfizer immediately challenged the decision, and in June 2006 the Beijing Intermediate People's Court ruled in favor of Pfizer after one and half years of review. This ruling was appealed by the domestic drug manufacturers to the Beijing High People's Court. The High Court on Thursday rejected the appeal and instructed SIPO to withdraw its opposition to the drug.

The decision should reaffirm Viagra's position in the Chinese market for erectile dysfunction drugs. It is estimated that the combined legitimate and underground markets for ED drugs in China is CNY 20 billion (US$2.7 billion). Pfizer still faces some challenges however. Earlier this year the company lost a trademark infringement case with a domestic maker of sildenafil over the usage of the brand "Wei Ge" or "Mighty Brother". "Wei Ge" is the trade name used by Pfizer to market the drug in China. Pfizer has filed an appeal.

Source: www.seekingalpha.com