AstraZeneca bolstered by Seroquel patent victory

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The court decision to award summary judgment in its favour, thus avoiding the need for a lengthy trial, underpins future profits by making it virtually certain generic copies of the $4 billion (2 billion pounds)-a-year blockbuster will not be launched any time soon.

Although many investors had expected AstraZeneca to prevail in the case, analysts at Morgan Stanley said the news still removed a significant threat, since U.S. profits on Seroquel account for 25 percent of forecast 2009 earnings.

"We estimate yesterday's decision removes an overhang worth around 1.50 pounds per share in discounted cash flows," they wrote in a note, reiterating an "equal-weight" stance on the stock.

A court in New Jersey granted AstraZeneca's motion for summary judgment on the basis of no inequitable conduct, making unnecessary a trial that had been slated to begin on August 11.

AstraZeneca had sued both Teva Pharmaceutical Industries Ltd and Sandoz, the generics arm of Novartis AG, alleging their plans to launch generic versions of Seroquel infringed its patents.

Teva and Sandoz had already conceded infringement and the validity of AstraZeneca's patent, so only the issue of inequitable conduct remained to be resolved.

"We are pleased with the court's decision to uphold our valid intellectual property. Seroquel remains an important part of our company's portfolio," AstraZeneca Chief Executive David Brennan said in a statement.

TEVA TO APPEAL

Teva said it planned to appeal against the decision, which was announced late on Tuesday, suggesting the legal tussles may not be over yet.

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