Dr. Reddy's Labs spurts after favorable US court ruling

Dr. Reddy's Laboratories rose 7.46% to Rs 2633 at 9:18 IST on BSE after the company announced favorable outcome in Buprenorphine and Naloxone Sublingual Film patent litigation.

The announcement was made after market hours yesterday, 20 November 2018.

Meanwhile, the S&P BSE Sensex was down 79.73 points, or 0.22% to 35,394.78.

On the BSE, 26,000 shares were traded in the counter so far compared with average daily volumes of 35,000 shares in the past two weeks. The stock had hit a high of Rs 2640 and a low of Rs 2605 so far during the day. The stock hit a 52-week high of Rs 2,687.45 on 28 September 2018. The stock hit a 52-week low of Rs 1,888 on 21 May 2018.

The United States Court of Appeals for the Federal Circuit issued a decision in favor of Dr. Reddy's Laboratories Inc., concluding that lndivior had not shown that it is likely to succeed on the merits of its infringement case on US Patent No. 9,931,305. This decision vacates the District Court's preliminary injunction that had prohibited Dr. Reddy's from selling its generic version of Suboxone (buprenorphine and naloxone) sublingual film. As a result of the ruling, Dr. Reddy's will resume its launch activities as soon as permitted.

In June, the US Food and Drug Administration (USFDA) approved Dr. Reddy's Buprenorphine and Naloxone Sublingual Film, in four strengths including 2 mg/0.5 mg, 4 mg/1 mg, 8 mg/2 mg, and 12 mg/3 mg, for sale in the US market. The product was launched immediately after approval, with sales and commercialization activites halted as a result of a court-imposted temporary restraining order (TRO) against Dr. Reddy's. The TRO did not include a prohibition on commercial manufacturing of the product.

On a consolidated basis, net profit of Dr Reddy's Laboratories rose 69.71% to Rs 518.30 crore on 7.24% rise in net sales to Rs 3817.50 crore in Q2 September 2018 over Q2 September 2017.

Dr. Reddy's Laboratories is an integrated pharmaceutical company committed to providing affordable and innovative medicines for healthier lives.

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