The United States Court of Appeals for the Federal Circuit has ruled that Dr. Reddy’s Laboratories Ltd. will infringe on the patent of Sunovion Pharmaceuticals blockbuster drug Lunesta.

The court delivered its verdict on Thursday.

Setting aside an earlier ruling given by a New Jersey Court, the Federal Circuit Court said that the lower court had 'erred' in granting summary judgement of non-infringement by Dr. Reddy’s (DRL).

Lunesta (eszopiclone) is the prescription brand to treat insomnia.

Sunovin is a wholly-owned subsidiary of Dainippon Sumitomo Pharma Co. Ltd (DSP). According to Dainippon Sumitomo Pharma, Lunesta generated $136 million in revenues in North America and Chinese markets in the April-June quarter of the current fiscal.

'In view of the foregoing, we conclude that the district court’s construction of the asserted claims was correct, but we also conclude that the court erred in granting summary judgement of non-infringement to Reddy.

'Therefore, because Reddy’s ANDA (Abbreviated New Drug Application) specification infringes claim 1 of Sunovion’s ’673 patent as a matter of law, the judgement of the district court is reversed,' the court said in its order.