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Dr. Reddy's Laboratories slipped a little over 10 percent in morning trading on Monday after the New Jersey District Court converted an interim injunction into a preliminary injunction against the corporation that prevents it from launching generic Suboxone in the US market. the dispute relating to US Patent No. 9,931,305 is concluded.
Reacting to the news, Dr. Reddy's labs slid up to 10.7 percent in the first 15 minutes of trading. However, the drug maker announced Saturday that it would appeal a decision of the US District Court of New Jersey regarding further sales and marketing of its generic Suboxone sublingual film in the United States. United.
"The company disagrees with the court's ruling, and will appeal vigorously," said Dr. Reddy in a disclosure to the exchanges. She intends to appeal the decision rendered by the court at a preliminary injunction hearing.
Dr. Reddy on Friday launched his sublingual generic film buprenorphine / naloxone or Suboxone "at risk" in the United States after obtaining the final approval of the United States. Indivior, the innovator from British drug maker Reckitt Benckiser, has approached the court and obtained an immediate injunction against Dr. Reddy's for launching the drug because of ongoing litigation. .
Suboxone, used in the treatment of opioid addiction, recorded sales in the United States of about $ 1.86 billion for the 12-month period ending in April, according to IQVIA. The drug accounts for about 80% of Indivior's sales.
Here's how the world's top brokers reacted after the news:
Jefferies: Underperform | Reduce the goal to Rs 1,850 from Rs 1,910
Jefferies keeps his underperforming score on Dr Reddy Laboratories but reduces his target price to Rs 1850 from Rs 1910.
The Company received a preliminary injunction against the generic launch Suboxone. The injunction is a surprise because Indivior had to prove that it could prevail at the patent hearing, the note said.
The global brokerage firm added that the injunction adds to the risks for the 2000 EPS estimates that increased after the decision.
Morgan Stanley: Overweight | Target: Rs 3,465
Morgan Stanley maintains an overweight position in Dr. Reddy Laboratories with a target price of Rs 3465. The monetization schedule is now delayed for Suboxone. The verdict of the Court contrary to the expectation of resumption of sales said the note.
Nomura: Buy | Target Rs 2,704
Nomura maintains a call to purchase on Dr. Reddy's Laboratories with a target price of Rs 2704. The Preliminary Initiation (PI) is in favor of Indivior and against Dr. Reddy & # 39; s
. Reddy's call on the IP verdict will take 2-6 months, said Nomura's note. The IP would have a negative impact as competition could intensify for the drug. Nomura awards a 60% stake in the opportunity gSuboxone in the price target
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