Patent Dispute

AstraZeneca PLC 9 October 2000 ASTRAZENECA RECEIVES FURTHER JUDGEMENT IN AUSTRALIAN OMEPRAZOLE PATENT DISPUTE AstraZeneca today announced that it will seek special leave to appeal against a judgement delivered in the Full Federal Court of Australia in Sydney in a dispute with the generic pharmaceutical company, Alphapharm Pty Limited, about the formulation patent for omeprazole - the substance used in 'Losec', a treatment for acid-related disorders, such as peptic ulcers. The Court determined that AstraZeneca's formulation patent was obvious and lacked inventive step. The court has not yet determined Alphapharm's counter-appeal on infringement and other validity issues on which AstraZeneca was successful at first instance. 'We will seek to appeal against this judgement since we are confident that the patent is not obvious and has sufficient inventive step,' said Dr Martin Nicklasson, Executive Vice-President & Head of AstraZeneca's Gastrointestinal Franchise. The substance patent for 'Losec' began expiring in the first countries last year (1999). The substance patent expired in Australia on April 11, 1999. Sales of 'Losec' in Australia in 1999 amounted to approximately USD 100m, which is under 2 per cent of the total sales of the product. In most countries AstraZeneca has been granted Patent Term Extensions or Supplementary Patent Certificates (SPCs). This extended coverage for the patent is valid in the USA until 2001, in most European countries until 2002-2004, and in Japan until 2004. 'Losec' is also protected by patents directed to formulation, uses, intermediates and processes. Further Enquiries: Michael Olsson Tel. +44 (0)20 7304 5087 Ed Seage Tel. +44 (0)20 7304 5101 Jorgen Winroth Tel. +1 609 896 4148

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