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Guangzhou Welman Pharmaceutical Wins Patent Authorization Lawsuit

This article was originally published in PharmAsia News

Executive Summary

The antibiotic piperacillin-shubatanna patent authorization lawsuit between Shanghai Asia Pioneer Pharmaceutical and Guangzhou Welman Pharmaceutical recently came to a close. The China International Economic and Trade Arbitration Commission ruled that Asia Pioneer has infringed on Welman's patent and needs to pay RMB 4.7 million ($687,838) compensation. In 2005, Welman transferred its piperacillin-shubatanna patent to Asia Pioneer at RMB 80 million, the highest patent transfer fee in China's pharmaceutical industry to date. However, Welman withdrew its patent from Asia Pioneer two years later for not paying the patent royalty, but the latter continued producing and selling the drug, leading to Welman's lawsuit. Analysts believe the heated fight can be attributed to the drug being included in the national medical insurance in 2005, which offers a promising market. (Click here for more - Chinese language)



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