) possesses a leading franchise in pulmonary arterial
hypertension (PAH) with four products for this indication,
namely, Tracleer, Ventavis, Veletri and Opsumit.
Opsumit was approved by the U.S. Food and Drug Administration
on Oct 18, 2013 and the drug was launched in Nov 2013. Health
Canada, EU and Australia also approved this drug in Nov 2013, Dec
2013 and Feb 2014, respectively.
Recently, to Actelion's dismay, the Supreme Court of
California denied the company's petition for review of the Court
of Appeal's decision affirming the final judgment entered against
Actelion in Nov 2011 in the case of Asahi vs. Actelion. Actelion
believes that there are significant reasons for the Supreme Court
to review this case.
We note that Actelion had acquired CoTherix in 2007. CoTherix
and Asahi Kasei Pharma had a license agreement to develop
fasudil, which was terminated following Actelion's acquisition of
CoTherix. Asahi sued Actelion and CoTherix in Nov 2008.
In May 2011, a Californian court jury awarded up to $547
million as compensatory damages to Asahi Kasei Pharma and
punitive damages of $30 million against certain officials of
Actelion. Actelion had then filed a motion which could have
significantly reduced the compensatory damages.
Actelion filed a series of post-trial motions which were
granted in part. The final amended verdict came to approximately
$407.3 million in compensatory damages, which include a total of
$30 million in punitive damages against three officers of the
To the company's disappointment, the California Court of
Appeal affirmed the amended final judgment. Actelion continued to
believe that the decision of the Court of Appeal was not
supported by facts and was incorrect from the point of view of
law. Thus, Actelion filed a petition in the Supreme Court of
California, requesting that the Court review the Court of
Actelion carries a Zacks Rank #2 (Buy). Investors looking for
better-ranked stocks in the biopharma sector may consider
Gilead Sciences Inc.
Questcor Pharmaceuticals Inc.
), all of which carry a Zacks Rank #1 (Strong Buy).
ACTELION LTD (ALIOF): Get Free Report
GILEAD SCIENCES (GILD): Free Stock Analysis
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