Indivior PLC (OTC: INVVY) shares soared over 20% in the London Stock Exchange at the open of the market on Monday due to a U.S. court blocking the India based rival, Dr. Reddy’s Laboratories Ltd. (DRL), from selling duplicate versions of Indivior’s top selling opioid addiction treatment drug in the U.S.
The two pharmaceutical companies are currently entangled in a patent infringement lawsuit over Indivior’s Suboxone sublingual film treatment ever since the FDA approved DRL for its generic version in June.
“As a result of today’s court ruling, Dr. Reddy’s is prevented from re-launching its generic product until the patent litigation related to the ‘305 patent is concluded or until DRL prevails on an appeal of this injunction. While we do not know the timing for these events, we will continue to vigorously defend our intellectual property,” said Shaun Thaxter, Chief Executive Officer of Indivior.
The Company announced that it expects roughly USD 25 Million in net revenue losses due to DRL selling its generic drug in the U.S. “Indivior does not know the exact quantity of product sold by DRL prior to the issuance of the TRO, but based on the recent abrupt loss of market share for its SUBOXONE® Film, anticipates the FY 2018 net revenue impact to be at least USD 25M,” it said in a press release.
Indivior’s revenue is made mostly through Suboxone Film sales, which contributes to 80% of the Company’s revenue. Suboxone Film is used to help drug users overcome heroin addiction.
This is not the first legal battle Indivior has been involved with. The Company has been in numerous legal battles to stop generic drug makers from flooding the U.S. market with their own cheaper, generic version of Suboxone Film.
Following the court ruling, Dr. Reddy’s Laboratories shares fell over 9% in morning trading on the National Stock Exchange.