Dr Reddy’s restrained from selling generic drug Nexium in USA market

“(The) defendant’s actions, as described above, including without limitation the use and promotion of the purple generic esomeprazole magnesium capsule are likely to cause confusion, or to cause mistake, or to deceive as to the origin, sponsorship, or approval of defendant, its products, and/or its commercial activities by or with AZ, and thus constitute trademark infringement, false designation of origin, passing off, and unfair competition”, AstraZeneca said in its petition.

A United States court has temporarily banned Hyderabad-based Dr Reddy’s Laboratories, India’s second-largest drugmaker by sales, from selling its heartburn drug Nexium after AstraZeneca, the patent holder, objected to the use of purple colour in the generic. The company said the order has been passed pending further hearing or trial.

The order, the company said, came about as a result of a motion moved by AstraZeneca objecting to the usage of the colour purple in the said product. Dr. Reddy’s pill-which comes in a capsule with two shades of purple-was launched in September following other generics. Although a few copies are already out on the market, analysts still see Dr Reddy’s as hugely benefitting from its generic.

Dr. Reddy’s said in an emailed statement that it was too early to comment on a projected sales figure.

The company said it is in the process of preparing a comprehensive remediation plan to be submitted in 15 days, as was stipulated by the USFDA.

Shares of Dr.Reddy’s extended losses for a third consecutive trading session, declining 1.45% to Rs3336.

Pfizer Inc. has sold an over-the-counter authorized version of Nexium, called Nexium24HR, since May 2014.

“On an average annual basis since 1995, AZ has spent over $250 million building its purple brand”, AZ argued.

AstraZeneca filed its complaint against Dr. Reddy’s in late October, arguing that Nexium’s purple color is protected by three federal trademarks, and the similarity of Dr. Reddy’s pill could be confusing to customers.

Nexium had branded and generic sales of approximately $5.2 billion for the 12 months ended July, according to US-healthcare information provider IMS Health.

Suryatapa Bhattacharya contributed to this article.