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Bausch Health to defend patents against Norwich

Published 2024-05-14, 05:19 p/m
BHC
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LAVAL, QC - Bausch Health (TSX:BHC) Companies Inc. (NYSE:BHC)(TSX:BHC) and Salix Pharmaceuticals, its gastroenterology division, announced today their ongoing litigation strategy against Norwich Pharmaceuticals, Inc. This follows a recent legal development where both companies filed for a rehearing after an April 11, 2024, court decision.

The companies are currently awaiting a decision from the US Court of Appeals for the Federal Circuit on whether the rehearing will be granted, which is expected within the next three months.

In addition, Bausch Health received a Paragraph IV certification notice on May 10, 2024, from Norwich. This notice informs Bausch Health of Norwich's submission to the U.S. Food and Drug Administration (FDA) for approval to market a generic version of XIFAXAN® (rifaximin) 550 mg tablets, which is prescribed for the treatment of irritable bowel syndrome with diarrhea in adults.

Bausch Health is in the process of reviewing the notice and has a 45-day period to initiate a patent infringement lawsuit against Norwich. The initiation of such a lawsuit would automatically stay the FDA's approval of Norwich's Abbreviated New Drug Application (ANDA) for up to 30 months or until a district court decision unfavorable to Bausch Health, whichever comes first.

The company has expressed its intention to vigorously enforce its intellectual property rights concerning XIFAXAN®, a medication also indicated for reducing the risk of overt hepatic encephalopathy recurrence in adults.

Salix Pharmaceuticals, a part of Bausch Health, is recognized as one of the leading specialty pharmaceutical companies globally, focusing on gastrointestinal diseases for over three decades. Bausch Health itself is a global company with a diverse portfolio that includes products in gastroenterology, hepatology, neurology, dermatology, medical aesthetic devices, international pharmaceuticals, and eye health.

InvestingPro Insights

As Bausch Health Companies Inc. (NYSE:BHC) navigates through its current legal challenges, investors and stakeholders are closely monitoring the company's financial health and market performance. According to real-time data from InvestingPro, Bausch Health's market capitalization stands at $2.61 billion, reflecting the market's current valuation of the company. Despite recent legal battles, BHC's revenue has shown resilience, with a growth of 10.01% over the last twelve months as of Q1 2024, indicating a robust top-line performance.

InvestingPro Tips suggest that Bausch Health's net income is expected to grow this year, providing a glimmer of hope for profitability in the near future. Additionally, the stock's Relative Strength Index (RSI) indicates that it is currently in oversold territory, which could signal a potential buying opportunity for investors seeking to capitalize on short-term price movements. However, it's worth noting that four analysts have revised their earnings expectations downwards for the upcoming period, which may warrant caution.

These insights, along with the company's strong free cash flow yield as implied by its valuation, paint a complex picture for Bausch Health as it contends with its legal environment. For investors looking to delve deeper into BHC's financials and future prospects, there are 7 additional InvestingPro Tips available at InvestingPro. Don't forget to use coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more expert analysis and actionable insights.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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