The U.S. court of appeals for the Federal Circuit dealt a legal
Bristol-Myers Squibb Company
). The court rejected the company's appeal against a verdict issued
in Feb 2013 in a patent related case involving Bristol-Myers'
hepatitis B virus drug, Baraclude.
The Story so Far
Teva Pharmaceutical Industries Ltd.
) is looking to manufacture and sell its generic version of
Baraclude. To that end, Teva filed an Abbreviated New Drug
Application (ANDA) with the FDA in Aug 2010. Bristol-Myers received
a Paragraph IV certification notice from the generic player
challenging the Orange Book-listed patent (5,206,244) covering
Bristol-Myers challenged the application in the U.S. District Court
for the District of Delaware in Sep 2010, alleging patent
infringement. The district court ruled against Bristol-Myers in Feb
2013 and Teva gained tentative approval to sell its generic version
of Baraclude from the FDA in Oct 2013. Bristol-Myers appealed the
Feb 2013 verdict only to end up on the losing side again.
Following the adverse verdict, Bristol-Myers is exploring all
possible legal options. Baraclude is one of the most promising
drugs at Bristol-Myers and its genericization would significantly
hurt the biopharma major's top line.
Generic Threat to Key Drugs
Bristol-Myers saw a significant reduction in its revenues following
the genericization of Plavix in 2012. The company is looking to
combat the generic threat hanging over its key drugs through
partnering deals and acquisitions and introducing new products to
augment its product portfolio.
Bristol-Myers, like other major players in the healthcare sector,
is focusing on the lucrative emerging markets like India to drive
growth. In a bid to expand its footprint in India, the
biopharmaceutical major extended its tie-up with Syngene
International last week by five years. Financial details of the
extended deal were not disclosed. Syngene, a unit of Biocon, is
India's largest contract research organization.
Bristol-Myers currently carries a Zacks Rank #3 (Hold).
Better-ranked biopharma stocks include
). Both the stocks sport a Zacks Rank #1 (Strong Buy).
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