DRL takes a hit of 10% on US court order

Dr Reddy's Laboratories reeled early Monday, plunging nearly 10 per cent, after the New Jersey District Court granted a preliminary injunction against sale of the generic version of Suboxone used for treating opioid dependence.

The stock closed the day at Rs 2,089.15, down 9.85 per cent on the BSE.

The court has prevented Dr Reddy's from re-launching its generic product until the patent litigation by Indivior is concluded or until it prevails on an appeal of this injunction, a statement by CEO of Indivior Shaun Thaxter read.


Dr Reddy's was selling generic product in the US market prior to the grant of a temporary restraining order (TRO) on June 15. The TRO remains in place, an Indivior note read.

The court has also ordered the two parties to submit a final proposed injunction order on Monday. It has asked Indivior to post a bond to provide security to Dr Reddy's should the court conclude at the end of patent litigation that the patent is invalid or not infringed.

Indivior sees a $25 million dent on its revenues due to the product of Dr Reddy's.