Actavis files emergency appeal against District Court decision on Namenda

Ireland-headquartered generics major Actavis (NYSE: ACT) is filing an emergency appeal to the US Court of Appeals for the Second Circuit to overturn a ruling that it must discontinue distribution of Namenda (memantine HCl).

A lower court ruled that the Namenda immediate-release tablets, which are being phased out and patients switched to a new, extended-release formulation, was an illegal attempt to maintain a monopoly as the newer form has a much longer patent life. The old, immediate-release tablets face generic competition in July, and Actavis’ strategy would make it more difficult for generics to successfully enter the market.

Judge Robert Sweet of the United States District Court for the Southern District of New York issued a preliminary injunction on December 15, requiring Actavis to continue distribution of Namenda immediate-release tablets. On December 11, 2014, the company first confirmed the court's intention to issue the injunction.