Generic Drug Makers Win Ruling Against Pfizer

Strategic Insights -

Generic drug makers, led by Alpharma Inc., have emerged victorious in a patent case involving the epilepsy drug Neurontin, with a federal court ruling declaring non-infringement. This ruling may have significant implications for the drug industry, as it sets a precedent for generic drug makers to challenge patents for popular medications. Meanwhile, Burlington Coat Factory Warehouse Corp. reported a 29% drop in fourth-quarter profit due to increased costs, and Computer Horizons Corp. shareholders are wary of a proposed acquisition deal that may undervalue the company. Additionally, a $3 million gift from the former head of Goya Foods will be used to establish an institute at Seton Hall University to study the impact of Latinos on American culture and society.

Key Takeaways:

  • Alpharma Inc. and other generic drug makers have won a summary judgment motion against Pfizer Inc. in a patent case involving the epilepsy drug Neurontin.
  • The federal court ruling found that Alpharma and its co-defendants are entitled to a judgment of non-infringement, which may set a precedent for generic drug makers to challenge patents for popular medications.
  • Burlington Coat Factory Warehouse Corp. reported a 29% drop in fourth-quarter profit due to increased costs, with net income falling to $15.3 million from $21.6 million a year earlier.
  • Sales rose 12% to $763.7 million, but total expenses increased 14%, with the cost of goods sold rising to 61.3% of sales from 59.1% a year earlier.
  • Computer Horizons Corp. shareholders are skeptical of a proposed acquisition deal that would undervalue the company, with Institutional Shareholder Services urging rejection of the deal.
  • The shareholder group, the Computer Horizons Full Value Committee, which owns 10.3% of stock in the company,同意 the proposed deal undervalues Computer Horizons.
  • A shareholder vote on the acquisition is planned for September 2.
  • A $3 million gift from Joseph Unanue, former president and CEO of Goya Foods, and his wife, Carmen, will be used to establish an institute at Seton Hall University to study the impact of Latinos on American culture and society.

Statistics:

  • Net income for Burlington Coat Factory Warehouse Corp. fell to $15.3 million from $21.6 million a year earlier.
  • Sales rose 12% to $763.7 million, with a cost of goods sold of 61.3% of sales.
  • Analysts International stock has fallen 1.9% from its proposal price of $3.62 a share.
  • Computer Horizons Corp. stock is up 13.4% since the acquisition was announced.
  • The Computer Horizons Full Value Committee owns 10.3% of stock in the company.

Sources:

  • Lewis Krauskopf; Record staff and wire services
  • Combined wire services
  • The Associated Press