LONDON (Alliance News) - Indivior PLC Friday welcomed a favourable ruling from the District Court of Delaware on its patent litigation for its key Suboxone Film for the treatment of opioid addiction.
Shares in the company were up 36% at 235.1 pence Friday afternoon, having risen to as high as 247.9p.
The court ruled that Actavis Laboratories Inc and Par Pharmaceuticals Companies Inc's products infringe against Indivior's patents for Suboxone Film, and that the asserted claims of the patent are valid and enforceable. This gives Indivior's product patent protection until April 2024.
The court also ruled that asserted claims of another patent set to expire in 2023 are valid, but not infringed on by Watson and Par's products, and that the asserted claims of a further patent are invalid, but that some of the claims of this patent would be infringed by Watson and Par's products if they were valid.
Indivior noted that whilst the ruling marked "a very important milestone", investors should "remain mindful" that it has ongoing litigation against four other filers of generic competitors, in which it has also asserts its listed patents covering Suboxone Film.
It said it plans to continue working to achieve the best outcome for its shareholders in pursuing a resolution to these other litigations.
"The clarification provided by today's ruling means that the threat of early generic film entry has receded significantly and Indivior can continue with planning and executing its strategy, with increased confidence that its business model is not going to be structurally undermined in the immediate future," Indivior said.
Indivior noted that its financial guidance for 2016 remains in force.
"We are pleased that the court has ratified our confidence in the Suboxone Film patent portfolio. This confirmation gives our business the degree of certainty that we need to allow us to continue with our strategy to develop Indivior as the leading addiction treatment company. While welcoming this good news, we recognise that Indivior still needs long-term certainty, so we will leverage this outcome to seek a positive resolution of all the outstanding ANDA litigation involving Suboxone Film," said Chief Executive Officer Shaun Thaxter in a statement.
"Our confidence in the long-term future of Indivior has received a good boost today, and we look forward to the next chapter in our development," Thaxter added.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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Indivior (INDV)