AstraZeneca Could Face Generic Prilosec Soon

AstraZeneca (AZN Quote)could soon face generic competition against its super blockbuster Prilosec after a U.S. District Court decision Friday.

Patent protection for the drug ended in October, but the drugmaker has filed suits against generic makers over patents covering the way the ulcer drug's capsules are manufactured.

Judge Barbara Jones of the U.S. Court for the Southern District of New York ruled for AstraZeneca and against all but one of the generic firms, Kremer's Urban Development Co., a U.S. subsidiary of German drugmaker Schwarz Pharma.

In a statement Saturday, Schwarz Pharma said it is now the only company with a generic version of Prilosec that doesn't violate patents. In a statement also released Saturday, AstraZeneca said it is reviewing the decision in respect to the Schwarz subsidiary.

Schwarz Pharma CEO Patrick Schwarz-Schuette said in a prepared statement his company was looking for an quick way to get their version of the drug to market. Schwarz-Schuette said that he expected the generic drug to "contribute substantially to the overall performance" of company operations.

Prilosec, the brand name for omeprazole, is the second-largest selling drug in the U.S. with 2001 sales of $3.7 billion in the United States and $5.7 billion globally.

AstraZeneca closed regular trading Friday up $1.17, or 3.7%, to $32.55.