The Hyderabad based Indian multinational pharmaceutical company who was planning to relaunch its generic product of Indivior’s prescription medicine Suboxone in the United States market has been stopped by the U.S. Court. The court has prevented Dr. Reddy’s from re-launching its generic product until the patent litigation by Indivior is concluded or until it prevails on an appeal of its injunction.
However, the U.S. District Court for the District of New Jersey granted a preliminary injunction against Dr. Reddy’s, preventing it from selling or exporting the drug to the U.S. pending the outcome of the litigation.
The court also ordered the firm to submit a final proposed injunction order on July 16.
Suboxone prescription medicine used to treat addiction to heroin and prescription painkillers. This is why it is considered as a key drug in Dr. Reddy’s product portfolio.
The result, the shares of Dr. Reddy’s rallied last month in anticipation of the launch. Thus, after this breaking news, the shares of Dr. Reddy’s Laboratories would be in focus on tomorrow (Monday) morning after the New Jersey District Court decision. The court has also ordered the parties to submit a final proposed injunction order on Monday.
In fact, the Indivior is expecting a $25 million dent in its revenues due to the product by Dr. Reddy’s before the temporary restraining order (TRO) came into effect.
By taking the cues from the current situation, if anything doesn’t go in the favor of Hyderabad-based drugmaker then it would really impact the stocks of Dr. Reddy’s in the stock market and which will automatically affect investors invested in it.