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Ribapharm Sues Roche to Block Its Hepatitis Treatment

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From Reuters and Bloomberg News

Ribapharm Inc. on Monday filed a lawsuit to prevent Swiss pharmaceutical giant Roche Holding from selling a hepatitis treatment in the United States that would compete with ribavirin, the Costa Mesa company’s only product.

Ribapharm, which is majority owned by ICN Pharmaceuticals Inc., filed similar suits earlier this month against Roche in the Netherlands and Germany.

In its suit filed in U.S. District Court in Los Angeles, Ribapharm says it intends to enforce its U.S. patents on ribavirin.

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Ribapharm licenses ribavirin to Schering-Plough Corp., which sells the drug as Rebetol in combination with its Peg-Intron treatment for hepatitis C.

Roche is seeking U.S. approval for a rival therapy combining its hepatitis drugs Pegasys and Copegus, a form of ribavirin.

It expects to introduce those products in the U.S. by the end of the year.

“We are confident no valid patents exist that will block Roche from marketing its own ribavirin in the U.S.,” said Roche spokeswoman Pamela Van Houten.

Ribapharm relies heavily on royalties from ribavirin. Industry analysts have predicted that Schering-Plough will pay Ribapharm royalties of as much as $250 million this year and as much as $290 million in 2003 on ribavirin sales, compared with 2001 royalties of $143 million.

On the New York Stock Exchange, Ribapharm shares fell 5 cents to $5.80. Shares of Kenilworth, N.J.-based Schering-Plough fell 85 cents to $23.50, also on the NYSE.

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