Emergent BioSolutions (EBS) and Opiant Pharmaceuticals (OPNT) stocks plunged Monday after Teva Pharmaceutical (TEVA) won the right to produce a knock-off their opioid overdose treatment, Narcan.
Late Friday, Emergent confirmed the U.S. District Court in New Jersey sided with Teva in a patent battle over Narcan. A judge invalidated four patents protecting the emergency opioid overdose treatment from generic competition.
That paves the way for Teva’s generic version of the drug, known by the name naloxone, to launch. Emergent and Opiant are teamed up to the sell the branded version of the opioid overdose treatment.
On today’s stock market, Emergent stock tumbled 21% to 68.69. Shares of Opiant collapsed 22.7% to 9.04. Teva stock inched up 0.3% to 12.88.
Battle For Opioid Overdose Treatment
Last year, Narcan generated $280.4 million in sales for Emergent. That accounted for 31% of total product sales for the year.
Emergent said it will provide an update to its 2020 outlook when it reports second-quarter earnings. The update will incorporate the potential for a low-cost copycat of the opioid overdose treatment into its expectations.
The company is also planning to appeal the decision regarding its opioid overdose treatment.
“We remain committed to expanding awareness, maintaining affordability and increasing access to Narcan Nasal Spray, to improving public health and to assisting those dedicated to ending the opioid crisis,” Doug White, Emergent’s senior vice president and device business unit head, said in a written statement.
Representatives of Emergent and Opiant referred additional comment to an Emergent news release. A spokeswoman for Teva said the company is “pleased by the outcome,” but declined to offer additional insight into the pharma giant’s plans to launch the generic opioid overdose treatment.
Follow Allison Gatlin on Twitter at @IBD_AGatlin.
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