The New York Times reported June 8 that the U.S. Court of Appeals in Washington, D.C., ruled in favor of Endo Pharmaceuticals, which sought to invalidate Purdue's OxyContin patent and begin making a generic version of the drug. Purdue has made about $1.5 billion in annual OxyContin sales over the past five years.

The three-judge appeals panel upheld a lower-court ruling that Purdue had falsely claimed in its patent application to have clinical evidence that OxyContin was easier for doctors to use than other pain-relief drugs. In addition to allowing for generic oxycodone drugs to be made and sold, the ruling exposes Purdue to possible litigation totaling billions of dollars.

Already, 65 separate lawsuits have been filed by insurers and others, asking that Purdue be forced to give back excessive profits derived from the improper patent on OxyContin.

Purdue officials said they would appeal the latest decision to the full Court of Appeals. "Purdue believes that the court's decision is contrary to principles of patent law," the company said.

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