Shares of Sun Pharmaceutical Industries Ltd were trading in the red and 5% lower on 4 November after the company announced that the US District Court of New Jersey had granted an injunction that had delayed the launch of Leqselvi (Baldness treatment) in the United States (US). 

Following a court decision, Sun Pharma is temporarily barred from launching Leqselvi until a favourable ruling or the patent expiry, the company stated in an exchange filing. Sun plans to appeal the decision.

The product has yet to be launched, as a preliminary injunction was filed on 1 August 2024 to prevent its release. In its Q2 earnings call, the company outlined contingency plans for an unfavourable verdict, including a possible out-of-court settlement before the patent expires in December 2026.

During Sun Pharma’s recent earnings call, analysts focused on Leqselvi, which is expected to generate around $200 million in sales over the next three to four years. Seen as a significant revenue driver, the drug’s launch plans were disrupted by a patent dispute shortly after FDA approval in the July-September quarter, with an initial launch slated for August.

In a worst-case scenario, an unfavourable court ruling would delay Leqselvi’s market entry until patent expiry. Royalties from Leqselvi would hinge on a settlement, the details of which remain uncertain pending the court’s final decision, the management noted.

At 12:36 pm, the shares of Sun Pharma were trading 3.61% lower at Rs 1,791.35 on NSE.

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