Dr. Reddy's Laboratories Ltd. relaunched a generic version of Indivior Plc's opioid addiction treatment Suboxone Film after getting a go-ahead from a U.S. court.
While the homegrown drugmaker began shipping of the product to the U.S., it said it remains an "at risk" launch because of the pending patent cases in appeals court, where it could face a penalty on a loss.
Morgan Stanley Analyst Sameer Baisiwala said Dr. Reddy's can garner $50-70 million in sales assuming a 25-30 percent market share.
Baisiwala has assumed a 65-70 percent price erosion considering a four to five player dynamic for the drug. Dr Reddy's could also be eligible for the security bond amount of $50-100 million, in case it wins the appeals court case, he said in a note.
Rejecting arguments from Indivior, U.S. Chief Justice John Roberts left in force a ruling that lets Dr. Reddy's put the generic drug on market. Indivior said Dr. Reddy's should wait until the high court considers whether to hear an appeal in the case.
Almost 875,000 people in the U.S. received Suboxone last year, according to Indivior. The U.K.-based drugmaker reported $768 million in sales during the first nine months of the year, with the bulk coming from Suboxone.
Indivior said Nov. 1 that it lost between $12 million and $18 million for the brief period Dr. Reddy's was on the market in July.
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