LEVERKUSEN, Germany -
Bayer AG said Tuesday a U.S. court had ruled against the company in a patent dispute over one of its major products, oral contraceptive Yasmin. The company's stock fell sharply.
The U.S. District Court in New Jersey ruled against the validity of Bayer (nyse: BAY - news - people ) Schering Pharma's patent after Barr Pharmaceuticals (nyse: BRL - news - people ) Inc. challenged it, the company said in a statement.
Although that means the company no longer has exclusive production rights, it does retain exclusive distribution rights in the U.S. until March 2009. "Bayer disagrees with the court's decision and will consider its legal options in this regard," the company said.
Loss of patent can mean sharp drops in sales revenue as other companies offer generic versions.
Bayer is currently assessing the full impact of the ruling but has already adjusted the profit margin for Bayer Schering Pharma - the unit that makes Yasmin.
Sales of Yasmin in the U.S. amounted to euro321 million (US$487.9 million) in 2007.
Bayer shares dropped 4.7 percent to euro47.85 (US$72.73) in Frankfurt
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