Ranbaxy's near term prospects to be impacted by US court's ruling

Nalinakanthi V BL Research Bureau | Updated on November 27, 2017 Published on November 20, 2014

Ranbaxy received yet another set-back with the US court disallowing the company's plea to block its competitors from launching generic versions of Nexium and Valcyte in the US.

Nexium sold by AstraZeneca is used to reduce the amount of acid produced in the stomach and Valcyte is Roche’s antiviral drug. The US district judge who was hearing the case in Minneapolis has turned down Ranbaxy's request to restrict Dr Reddy’s and Endo International from launching their generic versions.

Being the first generic filer, Ranbaxy was expected to earn revenues in excess of $350 million from these two drugs during the six-month exclusivity period.

In early November, US Food and Drug Authority revoked the tentative approvals for Nexium and Valcyte given to Ranbaxy. Following this, the company filed a suit challenging the FDA's directive and sought to block other generic filers from launching their generic versions of these drugs.

Revocation of Ranbaxy’s tentative approval for these drugs and the court decision against blocking generic launch by competitors will impact the company’s near-term prospects. However, the stock remained oblivious to these developments, gaining in excess of 3 per cent in trade on Thursday.

Follow us on Telegram, Facebook, Twitter, Instagram, YouTube and Linkedin. You can also download our Android App or IOS App.

Published on November 20, 2014
This article is closed for comments.
Please Email the Editor