UPDATE 2-Lilly wins a halt of generic Strattera sales

Thu Aug 19, 2010 2:00pm EDT

* Judge had invalidated Lilly patent, company to appeal

* Lilly says pleased with temporary halt on generic sales

* Shares of Lilly down 1.4 pct (Adds Lilly comment, updates stock price)

NEW YORK, Aug 19 (Reuters) - A federal judge has blocked 10 companies from selling generic versions of Eli Lilly and Co's (LLY.N) Strattera attention deficit disorder drug while Lilly appeals a ruling that declared its patent invalid.

U.S. District Judge Dennis Cavanaugh in Newark, New Jersey, said Wednesday's temporary injunction is intended to give Lilly time to obtain further injunctive relief from the U.S. Federal Circuit Court of Appeals in Washington, D.C.

The reprieve lasts until two weeks after a final judgment is entered in the matter. Cavanaugh rejected Lilly's request for an injunction to last until the appeal is resolved, a process that could take many months.

Lilly spokesman Mark Taylor said the Indianapolis-based company was pleased with the order. "This decision will prevent the immediate launch of generic atomoxetine while we request an appeal," he said.

On Aug. 12, Cavanaugh invalidated Lilly's patent for Strattera, which had been set to expire in 2017, following a nonjury trial in May.

Lilly reduced its 2010 revenue growth forecast after the ruling. Strattera sales totaled $147.1 million in the second quarter, a regulatory filing shows.

Defendants in the lawsuit include Mylan Inc (MYL.O), Teva Pharmaceutical Industries Ltd TEVA.O and other makers of generic drugs.

Lilly shares were down 1.4 percent at $34.30 on the New York Stock Exchange on Thursday afternoon.

The case is Eli Lilly and Co v. Actavis Elizabeth LLC et al, U.S. District Court, District of New Jersey, No. 07-03770. (Reporting by Jonathan Stempel; Additional reporting by Lewis Krauskopf; editing by John Wallace and Matthew Lewis)