Shares of Divi’s Laboratories fell 3% in early trade after MSN Laboratories secured a win in a key patent litigation case involving Novartis’s blockbuster heart failure drug Entresto (Sacubitril/Valsartan). The legal victory now opens the door for MSN to launch a generic version in the U.S. after July 15, 2025.
The development could be a setback for Divi’s, which is believed to be a major API (Active Pharmaceutical Ingredient) supplier for Entresto through its Custom Synthesis (CS) business. Brokerage firm Motilal Oswal noted that Entresto is likely the largest product in Divi’s innovator CS portfolio. With MSN’s generic entry, Divi’s may face an annual revenue loss of up to $100 million, which equates to about 5% of its total revenue.
However, the potential impact may already be baked into the company’s outlook. According to Motilal Oswal’s note, Divi’s had earlier indicated that changes in the product’s lifecycle were expected, likely referring to warnings from the innovator about patent expiry timelines.
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