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Drug maker Cubist plans suit over would-be generic

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Boston Articles
February 10, 2012|By Robert Weisman

Cubist Pharmaceuticals Inc. said it will file a patent infringement lawsuit against generic drug maker Hospira Inc. after being alerted that the Illinois company has asked regulators for permission to market a generic version of Cubist’s best-selling drug.

Cubist, based in Lexington, said it received notice that Hospira has filed an abbreviated new drug application with the Food and Drug Administration to sell its own version of the injectable antibiotic daptomycin, which Cubist markets under the brand name Cubicin.

Cubicin, which treats skin and bloodstream infections, generated about 98 percent of the company’s nearly $700 million in sales last year. It is currently protected by five US patents, which are scheduled to expire between 2016 and 2028.

The move by Hospira is the second challenge to Cubicin in three years under the Hatch-Waxman Act, a 28-year-old US law that encourages makers of generic drugs to contest patents on proprietary medicines so consumers can get cheaper versions sooner. Companies selling brand-name treatments contend they need longer exclusivity periods to recoup their costly investments on therapies, such as antibiotics, that fill important medical needs.

Cubist said it will file its suit within the 45-day response period allowed under the law. After that, the FDA is required to impose a 30-month stay before acting on Hospira’s application.

Shares of Cubist dropped 50 cents to $40.34 yesterday, a 1.2 percent decline on the Nasdaq stock exchange.

“We knew this challenge was a possibility,’’ said Cubist chief executive Michael W. Bonney. “It’s indicative of the fact that we have a very competitive product. We’ve been down this road before, and we’re well prepared to defend our patents.’’

The new patent skirmish, which could portend years of legal battles between the two companies, comes 10 months after Cubist settled long-running patent litigation with Israeli generic drug giant Teva Pharmaceutical Industries Ltd. Under that settlement, Cubist granted Teva a license to sell generic daptomycin in the United States starting in 2017 or 2018.

In exchange, Teva agreed to buy its US supply of daptomycin from Cubist, giving the Lexington company a revenue stream after its top-selling drug comes off patent later in the decade. Meanwhile, Cubist is developing new products, including antibiotics, to become more diversified by the time its Cubicin patents expire.

“Cubicin is doing well commercially, so the key for Cubist is going to be the pipeline,’’ said biotechnology analyst Howard Liang, managing director at health care investment bank Leerink Swann in Boston.

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