Shares in Natco Pharma surged as much as 13 per cent on Monday after the US Supreme Court on Friday denied a request by Teva Pharmaceutical to stay a lower-court ruling in a patent case that favoured the developers of generic versions of Teva's top-selling multiple sclerosis drug.
The decision could help pave the way for Natco to launch a generic version of Teva's Copaxone drug as soon as next month. Copaxone has accounted for about 20 per cent of Teva's sales and 50 per cent of its profits.
"On May 24, Copaxone's patent expires and if the US Food and Drug Administration (FDA) approves Natco's application, then Mylan can launch Copaxone in the US at risk," Surjit Pal of Prabhudas Lilladher told NDTV.
Hyderabad-based Natco has an agreement with US-based Mylan to market its generic version of Teva's Copaxone.
As of 09.52 a.m., Natco shares traded 9 per cent higher at Rs 781.55. Other midcap pharma shares also rallied sharply today. Shasun Pharma gained as much as 20 per cent, while Biocon jumped over 5 per cent.
Mr Pal said one good piece of news has led to a rally in other pharma stocks.
"Everyone is thinking that one of their products might click like Copaxone has clicked for Natco," he added.
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