Dr Reddy’s gets temporary restraining order for esomeprazole capsules

The bad news piled on for Indian drugmaker Dr Reddy’s Laboratories (NYSE: RDY) which today said that it has been made aware of an order passed by the District Court of Delaware, USA, granting a temporary restraining order (TRO) with immediate effect on sales, delivery, transfer, or other disposition of its generic esomeprazole product in the US market.

The order came about as a result of a motion moved by AstraZeneca (LSE: AZN) objecting to the usage of the color purple in the said generic version of the Anglo-Swedish pharma major’s Nexium brand. The news sent Dr Reddy’s shares down 5.65% to 3,303.35 rupees.

The order has been passed pending further hearing or trial. The Court has asked the parties to propose a next course of action and submit the same to the court. The court will conduct a telephonic status conference on November 12, 2015. The company is complying with the order of the Court and simultaneously evaluating all possible options to resolve the matter at the earliest.