Novartis to take $250-300 mln Q3 charge for Famvir
ZURICH, Sept 7 (Reuters) - Swiss drug maker Novartis (NOVN.VX) said it will take a one-off charge in the third quarter of $250 million to $300 million for impairment of intangible assets after rival Teva Pharmaceuticals launched a generic version of its antiviral compound Famvir.
Teva launched its generic verion of the treatment for herpes, cold sores and shingles on Sept. 7 after a U.S. District Court in Newark, New Jersey, denied a request from Novartis for a preliminary injunction. The two companies have been involved in patent infringement litigation since 2005.
Novartis said it would keep defending its intellectual property rights for Famvir, which it said has various US patents valid until 2015. It added a trial date had not been set.
"Teva risks potentially significant damages if Novartis prevails in litigation," said Novartis in a statement.
Novartis said it acquired worldwide rights to Famvir, which had 2006 net sales of $166 million in the United States.
The Swiss pharmaceuticals firm also reaffirmed its outlook for record operating and net income from continuing operations in 2007 as well as for "mid-single-digit" growth in net sales for group continuing operations and for "low-single-digit" growth in the pharmaceuticals division, both in local currencies.
((Reporting by Andrew Hurst, editing by Leslie Gevirtz; +41.44.631.7309; fax +41.44.251.0476; andrew.hurst@reuters.com)) Keywords: NOVARTIS/
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