Natco Pharma tanks as US court agrees to hear Teva's Copaxone appeal

The stock has plunged nearly 19% to Rs 650 in early morning deals on the National Stock Exchange.

Natco Pharma has tanked 16% to Rs 670 on reports that the US Supreme Court has agreed to hear an appeal filed by Teva Pharmaceutical Industries Ltd in a patent fight over top-selling multiple sclerosis drug Copaxone.

A move that could deter generic manufacturers from introducing cheaper versions onto the market as soon as May, the Reuters report suggests.

By agreeing to hear the case, the high court cast into doubt a July 2013 ruling by the US Court of Appeals for the Federal Circuit in favor of two teams developing cheaper generic forms of Copaxone: one involving Novartis AG's Sandoz Inc and Momenta Pharmaceuticals Inc and another involving Mylan Inc and Natco Pharma Ltd.

The stock opened at Rs 775 and hit a low of Rs 650 on the NSE. A combined 359,122 shares have already changed hands on the counter in early morning deals as against an average sub 150,000 shares that were traded daily in past two weeks on the BSE and NSE.