Shares of Zydus Lifesciences and Lupin plunged sharply on April 16 after both companies lost a patent litigation case related to the bladder treatment drug Myrbetriq in the United States. The US Federal Court ruled in favor of Astellas Pharma, the original patent holder, ordering both Indian generics makers to withdraw their respective versions of the drug from the American market.
At 1:06 PM IST, Zydus shares were trading at ₹843.70, down 4.47% or ₹39.45, while Lupin shares slipped 3.18% to ₹1,948.70. The stocks were among the top losers on the NSE, with the verdict triggering heavy selling pressure due to the expected financial hit.
Analysts estimate that Zydus derived nearly $35 million in quarterly revenue from Myrbetriq sales, while Lupin was generating between $25 million and $30 million. The forced market withdrawal will have a direct impact on their earnings in the US, which remains a key revenue contributor for both pharma giants.
The judgment, which held that Lupin and Zydus failed to prove the invalidity of Astellas’ patent, also opens up the possibility of financial penalties, adding to the negative sentiment around these stocks.
The stocks may remain under pressure until clarity emerges on the extent of the penalties or whether the companies plan to appeal the decision.
