Sanofi SA (ADR)(NYSE:SNY) and Regeneron Pharmaceuticals Inc (NASDAQ:REGN) have lost an important court battle. The two were seeking to have Amgen, Inc. (NASDAQ:AMGN) blocked from selling their cholesterol-lowering drug Praluent in the U.S. According to Judge Sue Robinson their argument that Amgen was going against its patents by covering a rival treatment was not convincing enough. The duo has now been ordered to halt the sale of Praluent for 12 years.
The new twist of events is a setback for the losing drugmakers given their market positions. Analysts had the projection the projection that Praluent would be generating $2 billion in sales by 2020. However, Sanofi and Regeneron have vowed to utilize the 30 days open period before the sales ban can take effect to appeal the ruling.
Regeneron’s general counsel writes, “We will continue to vigorously defend our case through the appeal process as we believe the facts and controlling law support our position.”
Billions of dollars have been spent to bring competitive products to the market
In the seven-page order ruling that banned the sale of Praluent, Judge Robinson encouraged all the parties to reach an amicable resolution that would give each of them a conducive business environment. Apparently, the ban will serve as a plus for Amgen because it would have meant the loss of contracts with insurers.
Nonetheless, each of the three has spent billions of dollars to satisfy the market with respective products. However, this is not in consideration anymore because the ruling has just created a wider market for Amgen’s Repatha, which would have otherwise lost its reputation.
Repatha and Praluent are used to restrain a protein known as PCSK9
Each of the two drugs has been approved by the U.S. Food and Drug Administration for use in the reduction of bad cholesterol. However, their use is limited to only those suffering from genetic conditions or cannot tolerate other cholesterol medications.
Notably, they are more costly than any other cholesterol drugs. Nonetheless, it remains to be seen what direction the appeal will take. Meanwhile, Sanofi’s stock was trading at $41.21 witnessing an increase of $0.96 or 2.39% while that of Regeneron closed at $353.25 a fall of $4.44 or 1.24%. On the other hand, Amgen’s close at $168.12 an increase of1.30 or 0.78%.
