Dr Reddy's Laboratories reeled early Monday, plunging 9 per cent, after the New Jersey District Court granted a preliminary injunction against sale of the generic version of Suboxone used for treating opioid dependence.
The stock crashed 9.48 per cent to hit a low of Rs 2,097.70 on the BSE.The court has prevented Dr Reddy's from re-launching its generic product until the patent litigation by Indivior is concluded or until it prevails on an appeal of this injunction, a statement by CEO of Indivior Shaun Thaxter read.Dr Reddy's was selling generic product in the US market prior to the grant of a temporary restraining order (TRO) on June 15.
The TRO remains in place, an Indivior note read.The court has also ordered the two parties to submit a final proposed injunction order on Monday.
It has asked Indivior to post a bond to provide security to Dr Reddy's should the court conclude at the end of patent litigation that the patent is invalid or not infringed.Indivior sees a $25 million dent on its revenues due to the product of Dr Reddy's .