Published: Fri, September 01, 2017
Business | By Max Garcia

Indivior To Appeal Ruling To Defend Intellectual Property For Suboxone Film

Indivior To Appeal Ruling To Defend Intellectual Property For Suboxone Film

The company, spun out of Reckitt Benckiser in 2014, said it would appeal against the DE court decision that the generic drug maker Dr Reddy's had not infringed its patents.

The ability for pharmacists in the U.S.to directly substitute Indivior's product for a generic without consulting patients could result in the branded incumbent losing up to 80% of its market share within months, the company said.

The US District Court of DE has issued a judgement that proposed generic version of Suboxone sublingual film does not infringe US patents as asserted by Indivior, Dr Reddy's Laboratories said in a filing to BSE.

The FTSE 100 .FTSE rose 0.4 percent by 0837 GMT while the wider FTSE 250 .FTMC was held back with a 0.2 percent retreat due to the collapse of Indivior's shares.

Broker recommendations were behind some of the bigger share price moves. Sales of Suboxone Film in the USA represented approximately 80% of Indivior's revenue for the year ended December 31, 2016.

The company said that if the US Food and Drug Administration approves Dr Reddy's alternative treatment, it could lose up to 80% of its market share "within a matter of months". "A material loss in market share in the United States would have a significant adverse impact on the Company's revenues, profitability and cash flows", the company added. As such, the company has prepared contingency plans based on various potential generic film launch scenarios.

'Today's news is disappointing to Indivior, given the blief that the company has its intellectual property for Suboxane Film, ' said chief executive Shaun Thaxter.

However, Indivior has lost the case, meaning rivals are free to make and sell similar drugs to Suboxone in the US.

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