18th Jun 2018 09:02
LONDON (Alliance News) - Indivior PLC said Monday it received a temporary restraining order from the US New Jersey District Court for Dr Reddy's Laboratories Ltd to cease the launch activities of a generic alternative to Indivior's opioid-addiction drug.
Indivior shares were trading up 5.3% at 379.70 pence on Monday. They closed 27% lower at 360.50 pence on Friday in response to the Dr Reddy's launch news.
The restraining order will remain in place pending a hearing on a preliminary injunction motion filed by Indivior on Friday, due to unresolved patent litigation with Dr Reddy's.
"We are pleased that the court has granted our request for a temporary restraining order. This order will stop Dr Reddy's launch activities before the court has had a chance to rule on the preliminary injunction motion," Chief Executive Officer
Shaun Thaxter said.
Last week, the US Food & Drug Administration approved a version of Suboxone Film produced by Dr Reddy's, which could lead to a fall of Indivior's sales. Suboxone Film sales account for around 80% of FTSE 250-listed pharmaceutical company's revenue.
On Friday, Indivior said it believed its Suboxone film medication could see a "rapid and material loss of market share" following the FDA decision.
The company said it intends to revisit its 2018 guidance "in light of the changed market circumstances". Its current guidance remains unchanged.
Suboxone is used to treat opioid dependence. The FDA said its decision to approve the generic versions would make the medication accessible to those that need it.
On Friday, the FDA decision pushed Moody's Investors Service to place the ratings of two Indivior PLC subsidiaries under review.
"The launch of a generic version by any company has the potential to lead to a rapid erosion of its revenues and earnings," Moody's said.
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