Shares of Natco Pharma Ltd zoomed to a new 52-week high after it was reported that a US Supreme Court Judge had turned down a request from Teva Pharmaceutical Industries to stay an appeals court order that would deny it patent protection for the drug Copaxone next year instead of 2015.
The drug is prescribed for the treatment of multiple sclerosis and has a huge market in the US.
Teva Pharmaceuticals is facing threat from Novartis AG-Momenta Pharmaceuticals Inc. combination and and Mylan Inc and Natco Pharma Ltd duo that are developing cheaper generic versions of its blockbuster drug.
Teva Pharma had sought stay of the lower court ruling even as it prepares to file a review petition. But the US higher court said the Chief Justice John Roberts had rejected its plea.
The decision of US Court of Appeals for the Federal Circuit itself was a reversal of a District Court’s decision with regard to Teva’s US Patent for Copaxone.
Generic version of Copaxone
In a communication to the stock exchanges on July 27 this year, the Hyderabad-based drug company had stated, while announcing the US Court of Appeal’s decision, that the ruling would enable Natco to launch the generic version of Copaxone, for which it had a marketing tie up with Mylan Inc in May 2014, subject to FDA approval.
Natco Pharma said that Copaxone (Glatiramer Acetate) was used in the “treatment of relapsing-remitting multiple sclerosis’’ and put the market for the drug at an estimated $3.45 billion in 2012 in the US.
The report of the US higher court sent the stock price hurrying to a new 52-week high of Rs 826 on the NSE this morning before the stock shed some of the gains to trade at Rs 798.70, a gain of Rs 37.30.