Court Ordered Seizure of Existing PetArmor™ Plus Products Inventory in the U.S. Went into Effect August 21, 2011

DULUTH, Ga.--(BUSINESS WIRE)--Merial announced today that the Court-ordered seizure of Velcera’s PetArmor™ Plus products inventory in the U.S. went into effect on August 21, 2011.

“We are pleased with the Courts’ decisions, and we expect, in light of those rulings, that Cipla, Velcera, and Fidopharm will take all necessary steps to promptly seize any existing inventory in the United States of the infringing PetArmor™ Plus products and deliver them to Merial”

On June 21, 2011, the U.S. District Court for the Middle District of Georgia ruled that Merial's U.S. patent covering FRONTLINE Plus^® is valid and that the PetArmor^™ Plus products infringe the patent.

In its June 21 Order, the District Court also held Cipla Limited (“Cipla”), Velcera Inc. and Fidopharm Inc. (collectively “Velcera”), the makers and marketers of PetArmor^™ Plus, in contempt of a previous injunction that prohibited the selling or importation of Cipla-manufactured products that infringed Merial’s patent. As part of its ruling, the district court enjoined Cipla and Velcera from further selling PetArmor™ Plus in the United States. The District Court also ordered the seizure of any existing inventory of PetArmor™ Plus in the United States. The District Court, however, stayed its Order until August 20, 2011 to permit Velcera and Cipla the opportunity to seek an expedited appeal.

On August 17, 2011, the U.S. Court of Appeals for the Federal Circuit denied Cipla’s and Velcera’s Motion requesting an extension of the stay beyond the August 20 deadline. Based on an assessment of Velcera and Cipla’s chances of succeeding on their appeal and weighing the equities, the Court of Appeals held that Cipla and Velcera had not established that a further stay was warranted. Accordingly, the injunction and seizure remedies in the District Court’s June 21 Order went into effect as scheduled, on August 21, 2011.

“We are pleased with the Courts’ decisions, and we expect, in light of those rulings, that Cipla, Velcera, and Fidopharm will take all necessary steps to promptly seize any existing inventory in the United States of the infringing PetArmor™ Plus products and deliver them to Merial,” said Merial’s Global Head of Intellectual Property, Dr. Judy Jarecki-Black, Esq.

Merial’s Executive Chairman, José Barella, added, "Merial has invested considerable time and resources developing its flagship FRONTLINE Plus^® products. Merial is committed to continuing its support of the veterinary profession and will continue to vigorously enforce its patents covering FRONTLINE Plus^® products.”

The case is BASF Agro BV et al. v. Cipla Ltd. et al., case number 3:07-cv-00125, in the U.S. District Court for the Middle District of Georgia, and Merial Limited v. Cipla Limited, Appeal No. 2011-1471, in the U.S. Court of Appeals for the Federal Circuit.

About FRONTLINE Plus^®

FRONTLINE Plus^® is proven to effectively kill 100% of fleas within 12 hours of application and continues to provide fast-acting, long-lasting flea and tick control. FRONTLINE Plus^® also breaks the flea life cycle to prevent future infestations. FRONTLINE^®, which was first launched in 1994, is the world’s best selling flea and tick treatment for dogs and cats.

About Merial

Merial is a world-leading, innovation-driven animal health company, providing a comprehensive range of products to enhance the health, well-being and performance of a wide range of animals. Merial employs approximately 5,600 people and operates in more than 150 countries worldwide. Its 2010 sales were more than $2.6 billion.

Merial is a Sanofi company.

For more information, please see www.merial.com.