By Ketki Saxena
Investing.com -- Bausch Health (TSX:BHC) Companies Inc shares closed the day 24.09% higher following a favorable court ruling regarding an ongoing patent dispute with rival company, Norwich Pharmaceuticals.
The conflict between the two pharmaceutical giants stems from Norwich's pursuit to manufacture and market a generic version of the popular irritable bowel syndrome (IBS) treatment drug, Xifaxan. This medication is currently being produced by Salix Pharmaceuticals - a subsidiary of Bausch Health.
In this high-stakes legal battle, the U.S District Court of Delaware ruled against Norwich Pharmaceutical's request to modify an existing final judgment that would have allowed them to obtain approval for their generic alternative before October 2nd, 2029 through an abbreviated new drug application (ANDA).
This case centered around what has been referred to as a "skinny label" decision – one that will likely maintain Xifaxan's stronghold on the IBS treatment market for some time. The court's refusal to grant modification ensures that FDA approval for any competing ANDAs remains off-limits until after October 2029.
Trading of Bausch Health was halted today at 1:10 PM, subject to a review of the pending news.