The Dr Reddy's Laboratories stock fell in afternoon trade after a US appeals court said the Indian pharma firm would have to wait a little longer before it can start selling a generic version of Indivior Plc's Suboxone Film opioid addiction treatment. The stock fell 5.16% intra day to 2569 level on the BSE. The large cap stock has fallen after two days of consecutive gain. On NSE, the stock fell 5.45% to 2,568 level. The stock was the top loser on Nifty.
The large cap stock has gained 14.43% during the last one year and risen 6.90% since the beginning of this year. The stock is trading above its 50-day and 200-day moving average of 2,534.70 and 2,378.88.
20 of 42 brokerages rate the stock "buy" or 'outperform', eleven "hold", eight "underperform" and three "sell", according to analysts' recommendations tracked by Reuters.
On November 20, an appeals court in the United States vacated the preliminary injunction order that had prohibited the Indian pharma firm from selling its generic version of Suboxone film in the US.
Suboxone is British drugmaker Indivior's best-selling opioid addiction treatment drug in the US. Shares of Indivior tanked about 47 percent on Tuesday, in a record single-day fall that day.
The sales ban will remain in effect to give Indivior time to challenge a November 20 appeals court decision it lost.
Indivior has been given time until December 20 to file a petition for rehearing in the case. The court rejected a request from Dr Reddy's that would have allowed the firm to go to market immediately.
In July this year, a US court granted preliminary injuction blocking the Hyderabad-based firm from selling cut-price versions (buprenorphine and naloxone) of the British drugmaker Indivior's best-selling opioid addiction treatment in the US. The ruling came days after Indivior scrapped its full-year guidance citing an "accelerated" loss in US market share to the cheaper version of Suboxone launched by Dr Reddy's.
Dr Reddy's and US-based Mylan received approval from the Food and Drug Administration (FDA) in June to sell versions of Indivior's bestselling opioid addiction treatment, which followed an immediate generic launch by the Indian firm in June.
The order was related to further sales and commercialisation of its Buprenorphine and Naloxone sublingual film in the US. It is the generic version of Indivior UK's Suboxone sublingual film. The product is indicated for treatment of opioid dependence.
Edited by Aseem Thapliyal