Regeneron's cholesterol-lowering drug Praluent has been banned in US market, following patent lawsuit loss to Amgen.
A federal judge has awarded victory to Amgen over a patent lawsuit against its competitor Regeneron.
The case involves the patented PCSK9 inhibitor, a drug that blocks bad cholesterol.
In August 2015, the Food and Drug Administration approved Repatha manufactured by Amgen. In clinical trials, LDL or bad cholesterols were reduced by 60 percent in people taking the drug for one year.
In July 2015, FDA approved the use of Praluent, a drug that has similar clinical trial results in lower bad cholesterol as with the drug by Amgen.
The new class of cholesterol-lowering drug by these two competing companies is reported to be a replacement therapy for people who are at risk of heart diseases and stroke because of bad cholesterol according to a report by Healthline.
In October of 2015, Amgen filed cases against Sanofi and Regeneron claiming that later had violated patent laws regarding the new drug developed by Amgen.
U.S. District Court Judge Sue Robinson will issue an injunction to pull out Praluent, a medication that was jointly developed and produced by Regeneron and Sanofi.
Aside from Praluent being banned on U.S. market, Regeneron/Sanofi investors believe that the judge will order Regeneron to pay Amgen royalty from revenues.
The judge had ordered a ban on further sales of the drug on U.S. soil stating that Regeneron had caused irreparable harm to Amgen as was reported in an article by TheStreet.
Following the victory, Amgen's stock rose 5% to $160.54 while Regeneron stocks halted at $380.92. According to estimates, Amgen's revenues from Repatha sale could move from $2 Billion to $3 to $4 billion if Praluent is gone from the market.
Sales for both Repatha and Praluent has been minimal up to this point as medical insurance companies refused to provide coverage for the medication.
Both drugs are undergoing follow-up studies and if scientifically proven to be able to lower rates of heart attacks, stroke and death Repatha from Amgen would stand to benefit and has the most to gain.
