KRKA, d. d., Novo mesto

Krka does not infringe MSD patent for manufacturing of losartan API in Norway

On 24 June 2008 Krka, d.d., Novo mesto received the decision of the District Court of Oslo, Norway, in the dispute over the alleged infringement of the patent protecting the losartan manufacturing process in Norway between Merck & Co. Inc. and its affiliated companies Merck and Company, Incorporated, Merck Sharp & Dohme BV and MSD (Norge) A/S (hereinafter »MSD«), and Krka, d.d., Novo mesto and its affiliated company Krka Sverige AB (hereinafter »Krka«), which intends to market the product in Norway.

The court ruled that Krka does not infringe the above mentioned patent. In December 2006 the Enforcement Court in Oslo, Norway issued a preliminary injunction based on the allegation of MSD that the above mentioned patent is infringed, which temporarily prohibited Krka to import and sell losartan in Norway. Consequentially the court found MSD to be liable for damages arising from Krka's lost profits in the approx. amount of EUR 3.8 million (NOK 30 million) as well as the costs of court proceedings in the approx. amount of EUR 0.2 million (NOK 1.6 million). The decision is not yet enforceable. MSD has the right to appeal against the decision. If Krka does not receive MSD approval to launch the product during the period of appeal and the appeal court confirms the District Court's decision, Krka is entitled to additional damages arising from additional lost profits during the period of appeal.

Date: 27. 6. 2008