Bausch Health shares jump on favorable court ruling

Investing.com -- Bausch Health Companies Inc (NYSE:BHC) stock closed up 13.3% following a favorable court decision. The U.S. District Court for the District of Columbia ruled in favor of the company in a lawsuit involving its gastroenterology business, Salix Pharmaceuticals, Inc., against Norwich Pharmaceuticals, Inc.

The court denied Norwich’s motion for a preliminary injunction treated as a motion for summary judgment, which sought to challenge the FDA’s tentative approval of Norwich’s Abbreviated New Drug Application (ANDA) for XIFAXAN® (rifaximin) 550 mg. Norwich contended that the FDA’s failure to determine Teva Pharmaceuticals USA, Inc.’s forfeiture of its 180-day exclusivity for the drug was unlawful and sought to expedite final approval of its ANDA. However, the court’s decision to grant summary judgment in favor of the FDA, Salix, and Teva effectively closed the case, ensuring Bausch Health’s sustained market exclusivity for XIFAXAN® until at least June 2028, assuming Teva launches its product in January 2028.

Thomas J. Appio, CEO of Bausch Health, expressed satisfaction with the court’s decision, emphasizing the company’s commitment to advocating for patients’ access to XIFAXAN. The ruling appears to have alleviated concerns about potential generic competition and the impact it could have on Bausch Health’s revenue from XIFAXAN®, which is a significant product in the company’s portfolio.

Investors may also be anticipating the company’s first quarter financial results, which are scheduled to be released after market close on Wednesday, April 30, 2025. The subsequent conference call and live webcast will provide further insights into the company’s performance and business outlook.

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The stock’s movement reflects investor confidence bolstered by the legal victory and the prospect of continued market exclusivity for one of Bausch Health’s key products. The company’s ability to maintain its competitive position in the market for XIFAXAN® is crucial, and today’s legal outcome has contributed positively to investor sentiment.

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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