Dr.Reddy’s Laboratories (NYSE:RDY) stock was down more than 10% on Monday as the company received a court order that prevents it from selling a generic version of a popular painkiller due to a patent issue.
A New Jersey District Court changed a temporary injunction into a preliminary injunction against the India-based company in order to stop it from releasing a generic version of Suboxone in the U.S. due to a patent case, which is still ongoing and it could affect the company’s ability to conduct business in the U.S.
The case in question is US Patent No. 9,931,305 and Dr.Reddy’s Laboratories said on Saturday that it plans on appealing the decision with the U.S. District Court of New Jersey regarding any future sales and commercialization of the generic Suboxone drug, which is a sublingual film.
“The company disagrees with the court’s decision, and will vigorously appeal it,” Dr. Reddy’s said. The company had rolled out its generic buprenorphine/naloxone sublingual film, also known as Suboxone, in the U.S. this past Friday after garnering final approval from the U.S. Food and Drug Administration about a month ago, on June 15.
Suboxone is mostly used to treat those who are opioid dependent and the medication overall amassed U.S. sales of roughly $1.86 billion in the 12 months ended April.
RDY stock was down more than 10.6% on Monday following the court order.