A US court has granted Lupin Ltd. and Zydus Lifesciences Ltd. permission to expand their patent argument scope in their ongoing legal battle with Astellas Pharma Inc. over generic versions of Myrbetriq, a treatment for overactive bladder. The decision provides the generic drug manufacturers with additional legal ammunition as they defend their controversial "at-risk" product launches.
Court Ruling Strengthens Generic Manufacturers' Position
The court's decision to allow expanded patent arguments comes after both Lupin and Zydus had voluntarily dropped their "obviousness" argument in 2023. According to market analysts at Axis Capital, this expanded scope reduces the companies' financial penalty risk and strengthens their defense against Astellas' patent infringement claims.
The court indicated it wants to avoid conflicting rulings on the same patent, as other generic manufacturers including MSN and Ascent are also pursuing full argument scope in similar cases. However, the court has ruled it will not entertain requests from Zydus and Lupin to delay the trial proceedings.
High-Stakes Market Battle
Myrbetriq, developed and marketed by Astellas Pharma Global Development, represents a significant market opportunity with a combined market size of $2.4 billion as of February 2024. The prescription drug treats overactive bladder (OAB), characterized by symptoms including frequent or urgent urination and urinary incontinence. It is also approved for treating neurogenic detrusor overactivity (NDO) in pediatric patients.
The generic version of the drug, known as mirabegron, has a patent expiration date of March 2030. Despite ongoing litigation, both Lupin and Zydus launched their generic versions "at risk" in April 2025, meaning they proceeded with market entry while patent disputes remained unresolved.
Previous Legal Setbacks
The generic manufacturers faced a significant setback in April 2025 when a US court ruled in favor of Astellas, blocking Zydus and Lupin from selling their generic versions. Additionally, in a separate ruling, Judge Joseph F. Bataillon of the US District Court for the District of Delaware found that the companies failed to prove that US Patent No. 10,842,780 is invalid, defeating key invalidity defenses in the long-running patent dispute.
Market Response
Following news of the expanded argument scope, shares of both companies gained over 2% in trading, with Lupin trading at 1,988 and Zydus Life at 952.55 around 12:35 pm. The positive market response reflects investor optimism about the companies' improved legal position in the high-value patent dispute.
The case highlights the complex dynamics of pharmaceutical patent litigation, where generic manufacturers often launch products "at risk" to capture market share while legal challenges proceed, balancing potential profits against the risk of significant financial penalties if patent infringement is ultimately proven.
