Bausch Health plunges on adverse patent dispute decision

29 July 2022

Shares of Canada-based Bausch Health Companies (TSX: BHC) tumbled more than 50% yesterday following an adverse US court ruling in a patent dispute over one of the company’s key drugs. The stock closed down 41% at $5.10.

Bausch Health and its gastroenterology business Salix Pharmaceuticals, today announced the US District Court of Delaware issued an Oral Order in the matter of Salix Pharmaceuticals et al v Norwich Pharmaceuticals regarding the infringement and validity of certain US patents protecting the composition and use of Xifaxan (rifaximin) 550mg tablets for the treatment of irritable bowel syndrome with diarrhea (IBS-D) and reduction in risk of overt hepatic encephalopathy (HE) recurrence.

The Oral Order indicates that the Court will find certain US patents protecting the use of Xifaxan for the reduction in risk of HE recurrence valid and infringed and US patents protecting the composition, and use of Xifaxan for treating IBS-D invalid.

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