Last Thursday, a federal district court denied Wyeth’s (WYE) motion for a preliminary injunction that would have prevented generic drug manufacturer Teva (NYSE:TEVA) from launching its generic version of Protonix. The opinion denying Wyeth's motion was filed under seal, and only the order (pdf) is currently publicly available.
Wyeth amassed $2.5 billion in sales of the heartburn medication for the sales year ending on June 30, 2007. Last month, the FDA gave Teva the go-ahead to launch 20 mg and 40 mg versions of generic Protonix. But since the district court has not yet held a trial on the merits of the case, Teva must decide whether to launch at risk, or to wait for a favorable verdict. At this point, Teva has not begun shipment of generic Protonix.
Wyeth’s stock price has already taken a hit from the ruling. After the court decision was announced on Thursday, Wyeth’s stock fell by $1.82/share in late-day trading.