District Court rules not to prevent Dr Reddy's and Endo from challenging Ranbaxy

Indian pharma company Ranbaxy (BSE: 500359) has been denied its request to prevent the US Food and Drug Administration from approving other generic versions of Nexium (esomeprazole), produced by UK pharma major AstraZeneca (LSE: AZN), and Swiss drug major Roche’s (ROG: SIX) Valcyte (valganciclovir).

District Judge Beryl Howell ruled not to restrain Dr Reddy’s Laboratories and Endo International, both of which recently received final approval from the FDA to manufacture Valcyte, in the face of Ranbaxy’s law suit trying to stop the drugmakers from producing generics.

Analysts’ estimates set a generic version of Nexium as adding around $150 million to Ranbaxy’s total sales within six months of launch, and Valcyte giving an additional $50 million to sales.