Axsome Therapeutics (NASDAQ:AXSM) stock is taking a beating on Monday as rival Teva Pharmaceutical (NYSE:TEVA) prepares a generic depression drug.
According to a filing with the U.S. Securities and Exchange Commission (SEC), Teva Pharmaceutical intends to make its own generic version of Auvelity. This is a depression drug developed by Axsome Therapeutics.
That filing has Teva Pharmaceutical arguing four of the patents listed in the U.S. Food and Drug Administration (FDA) Orange Book for Auvelity are invalid, unenforceable or will not be infringed by its own generic rival.
The SEC filing notes those patents are set to expire in 2040. With this latest move, Teva Pharmaceutical has submitted an Abbreviated New Drug Application to the FDA for its generic version of Auvelity.
What That Means For AXSM Stock
Axsome Therapeutics investors aren’t reacting well to news of a generic rival to Auvelity. If Teva Pharmaceutical moves forward with its plans, it could result in lost sales for Auvelity. That, in turn, could spell trouble for AXSM stock when earnings roll around.
AXSM is also seeing a decent amount of trading today alongside the news. As of this writing, nearly 1 million shares of the stock have changed hands. That’s quickly closing in on its daily average trading volume of about 1.2 million shares.
AXSM stock is down slightly as of Monday morning after seeing bigger falls earlier today.
Investors looking for all of the latest stock market news are in the right place!
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.