Natco Pharma jumped 5.91% to Rs 755 at 11:41 IST on BSE after the company announced that the United States Patent and Trademark Office has rejected Teva's patent reissue application on Copaxone.
The company made the announcement during trading hours today, 4 April 2014.
Meanwhile, the BSE Sensex was down 84.75 points, or 0.38%, to 22,424.32.
On BSE, so far 82,000 shares were traded in the counter, compared with an average volume of 21,653 shares in the past one quarter.
The stock hit a high of Rs 795 and a low of Rs 740 so far during the day. The stock hit a record high of Rs 877 on 6 March 2014. The stock hit a 52-week low of Rs 390 on 16 May 2013.
The stock had underperformed the market over the past one month till 2 April 2014, falling 15.38% compared with the Sensex's 6.78% rise. The scrip had also underperformed the market in past one quarter, sliding 10.61% as against Sensex's 7.96% rise.
The small-cap company has an equity capital of Rs 33.07 crore. Face value per share is Rs 10.
Natco Pharma announced that the United States Patent and Trademark Office (the PTO) issued a final office action rejecting Teva Pharmaceutical's application seeking a reissue of U.S. Patent No. 5,800,808 (the 808 Patent), which was found to be invalid by the Court of Appeals for the Federal Circuit in July 2013. The final rejection issued today finds the first claim of the reissue application, which is identical to the only claim in the '808 Patent, to be indefinite and both claims of the reissue application to be unpatentable based on obvious-type double patenting. In its ruling, the PTO refused to extend patent protection on Copaxone(R) past the patents that will expire in May 2014.
Natco said it is pleased that the PTO has rejected the reissue application, confirming the indefiniteness for the second time and consistent with the Federal Circuit's decision, and that the PTO continues to find all claims to be unpatentable.
On Tuesday, 1 April 2014, Natco Pharma announced that US Supreme Court has agreed to hear an appeal filed by Teva Pharmaceutical in a patent fight over top-selling multiple sclerosis drug Copaxone.
According to reports, the development is a big negative for Natco Pharma as by agreeing to hear the case the US Supreme Court cast into doubt a July 2013 ruling by another US Court that ruled in favour of companies developing cheaper generic of Copaxone.
In July 2013, the US Court of Appeals for the Federal Circuit had ruled 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.
Protections on Teva Pharmaceutical's patent on Copaxone were set to expire in May 2014. But an adverse decision by the US Supreme Court could deter generic manufacturers like Natco Pharma from introducing cheaper versions in the US market in May, reports suggested.
Natco Pharma said it continues to believe that Teva Pharmaceutical's 808 patent is invalid for indefiniteness.
Reports said that Teva is the world's largest maker of generic drugs, but its branded Copaxone has accounted for about 20% of its sales and 50% of its profits.
On a consolidated basis, Natco Pharma's net profit rose 32.3% to Rs 29.88 crore on 18.3% rise in revenue to Rs 189.39 crore in Q3 December 2013 over Q3 December 2012.
Natco Pharma manufactures generic dosage forms, bulk actives and intermediates for the Indian and international markets.
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