Dr Reddy’s Laboratories
is seeking Indivior Plc to pay ~$70mn as a compensation for lost US sales of its generic version of opioid addiction treatment that was delayed in a patent dispute with the Indivior.
In July, 2018, Indivior through a court injunction had blocked Dr Reddy’s generic version of Suboxone Film. This was despite Dr Reddy’s acquiring approval from regulatory authorities earlier to sell the product for opioid dependence. However, in February 2019, the US Supreme Court refused to uphold that injunction and allowed Dr Reddy’s to resume sales of the drug, media reports said.
Dr Reddy’s would have earned higher profit without Indivior’s court injunction, media reports stated citing GV Prasad, Dr Reddy’s MD and CEO.
Incidentally, Indivior posted a bond of $72mn to cover Dr Reddy’s potential claim of lost profit while the injunction was contested. However, Dr Reddy’s is claiming that it owed more than that since the injunction lasted longer than the bond was meant to cover.
Dr Reddys Laboratories Ltd' share price ended at Rs2,626.30, up by Rs10.35 or 0.4%, from its previous close of Rs2,615.95 on the BSE.
The scrip opened at Rs2,621 and touched a high and low of Rs2,655 and Rs2,612.85, respectively. A total of, 30,965 (NSE+BSE) shares have traded on the counter. The current market cap of the company is Rs43,612.56cr.