Dr. Reddy's Lab slumps after US Court order on Suboxone

Dr. Reddy's Laboratories lost 9.12% to Rs 2,106 at 14:35 IST on BSE after the company said the preliminary injunction orders issued by a US court against it on the launch of generic Suboxone.

The announcement was made on Saturday, 14 July 2018.

Meanwhile, the S&P BSE Sensex was down 161.36 points, or 0.44% to 36,380.27.

On the BSE, 2.81 lakh shares were traded in the counter so far compared with average daily volumes of 80,000 shares in the past two weeks. The stock had hit a high of Rs 2,239.40 and a low of Rs 2,071.50 so far during the day. The stock hit a 52-week high of Rs 2,788 on 24 July 2017. The stock hit a 52-week low of Rs 1,888 on 21 May 2018.

Dr. Reddy's Laboratories, along with its subsidiaries announced its intent to appeal the decision made by the US District Court for the District of New Jersey in a preliminary injunction hearing with respect to further sales and commercialization of Dr. Reddy's Buprenorphine and Naloxone Sublingual Film within the United States. The company disagrees with the court's decision, and will vigorously appeal it, Dr. Reddy's Laboratories said.

Dr. Reddy's had announced the receipt of the approval, on 15 June 2018 by one of its wholly owned subsidiaries, from the US Food and Drug Administration (USFDA) for its Buprenorphine and Naloxone Sublingual Film, 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg, therapeutic equivalent generic version of Suboxone (buprenorphine and naloxone) sublingual film, in the United States market.

Dr. Reddy's Laboratories' consolidated net profit fell 19.4% to Rs 272.10 crore on 0.54% fall in net sales to Rs 3534.90 crore in Q4 March 2018 over Q4 March 2017.

Dr. Reddy's Laboratories is an integrated pharmaceutical company. Through its three businesses - Pharmaceutical Services & Active Ingredients, Global Generics and Proprietary Products - Dr Reddy's Laboratories offers a portfolio of products and services including APls, custom pharmaceutical services, generics, biosimilars and differentiated formulations.

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