DOW JONES NEWSWIRES A federal appeals court agreed to stay a decision that had barred Watson Pharmaceuticals Inc. (WPI) from selling its generic blood thinner, dealing a new setback to rival Momenta Pharmaceuticals Inc. (MNTA). The U.S. Court of Appeals for the Federal Circuit granted the stay, postponing an October injunction that had barred Watson and partner Amphastar Pharmaceuticals Inc. from marketing their version of Lovenox, a blood thinner from Sanofi SA (SNY, SAN.FR), in the U.S. Momenta shares sank 21% to $15.05 Thursday. Watson was recently up 2.1% at $58.80. Momenta sued Watson and Amphastar in September for allegedly violating two of its patents that cover methods of producing enoxaparin sodium, the blood-thinning compound. The Food and Drug Administration has approved Amphastar's abbreviated new drug application for enoxaparin sodium, the blood-thinning compound. Watson has the right to distribute Amphastar's enoxaparin-sodium injection in the U.S. Momenta meanwhile has partnered with Sandoz Inc., a unit of Novartis AG (NVS, NOVN.VX), to launch its own generic version of the blood-thinning drug under a hybrid royalty/profit-sharing agreement. Watson on Thursday confirmed the stay but cautioned that the order doesn't represent the court's final decision on the litigation. Momenta President and Chief Executive Craig Wheeler also promised to continue pushing his company's case in court. "While disappointing, this decision does not reflect a final ruling on the appeal or the ultimate case," he said. "Any launch by Watson or Amphastar would be at risk and we continue to pursue our claims in the District Court." -By Drew FitzGerald, Dow Jones Newswires; 212-416-2909; andrew.fitzgerald@dowjones.com
