US Supreme Court Declines To Hear Vanda Pharmaceuticals' Case Regarding Invalidation Of Patents For Its Sleep Disorder Drug, Hetlioz
Portfolio Pulse from Vandana Singh
The U.S. Supreme Court declined to review Vanda Pharmaceuticals Inc's (NASDAQ:VNDA) appeal to revive patents for its sleep-disorder drug Hetlioz, previously invalidated in a legal battle with Teva Pharmaceutical Industries Limited (NYSE:TEVA) and Apotex. This decision leaves Vanda without patent protection for Hetlioz, impacting its ability to exclusively sell the drug. Vanda's annual revenue from Hetlioz sales surpassed $100 million in 2023, but the company's shares dropped 4.21% to $4.89 following the news.
April 22, 2024 | 6:37 pm
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POSITIVE IMPACT
Teva Pharmaceutical's involvement in the legal battle against Vanda Pharmaceuticals over Hetlioz patents may see a neutral to slightly positive short-term impact on TEVA's stock, given the Supreme Court's decision.
While the Supreme Court's decision directly impacts Vanda Pharmaceuticals, Teva Pharmaceutical stands to benefit from the ability to produce and sell generic versions of Hetlioz without the threat of patent infringement. This could potentially lead to increased revenue streams for Teva, although the immediate financial impact may be moderated by market and regulatory factors.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
NEGATIVE IMPACT
The Supreme Court's decision not to review Vanda Pharmaceuticals' appeal on Hetlioz patents directly impacts VNDA, leading to a 4.21% drop in its stock price.
The refusal to review the patent appeal for Hetlioz leaves Vanda Pharmaceuticals without patent protection against generic competitors, directly impacting its market exclusivity and revenue potential from the drug. The immediate negative reaction in the stock market reflects investor concerns over future earnings and competitive pressures.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100