Court tells Actavis it must continue Namenda IR distribution

Ireland-headquartered generic drugmaker Actavis (NYSE: ACT) confirmed that Judge Robert Sweet of the US District Court for the Southern District of New York (New York City) has announced an intent to issue a preliminary injunction apparently requiring the company to continue distribution of Namenda (memantine HCl) immediate-release tablets.

Actavis believes that the ruling will have no impact on its ability to continue focusing its resources on transitioning patients to the more convenient and innovative once-daily Namenda XR (extended release), indicated for the treatment of moderate to severe dementia of the Alzheimer's type. Actavis added that the Court has set a hearing for December 15 on the scope of the injunction. The company said that it will immediately appeal the decision.

“Today’s decision prevents Actavis from pursuing its scheme to block competition and maintain its high drug prices,” said Eric Schneiderman, the New York attorney general, in a statement quoted by the Wall Street Journal. “Our law suit against Actavis sends a clear message: Drug companies cannot illegally prioritize profits over patients,” he added.