Healthcare stocks, particularly those who deal in pharmaceuticals like Bausch Health (NYSE:BHC) can often make big moves after legal proceedings, especially if they end up a certain way. Bausch Health picked up over 23% at the time of writing after one such court case ended well for it.
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The case in question focused on Bausch Health versus Norwich Pharma, who requested modification for an earlier judgment around Norwich’s generic version of Bausch’s Xifaxan product. Xifaxan targets irritable bowel syndrome, and Norwich Pharma wanted to modify a judgment so the FDA could actually approve its generic version of Xifaxan for use before its current target date of October 2, 2029. The issue in question was over what was known as a “skinny label” decision, one that will likely keep Xifaxan as the big name in irritable bowel treatment for a while.
While this turned out to be good news for Bausch Health, it may not be out of the woods yet. Reports from Doug Miehm, an analyst for RBC, note that some generic entrants might also be able to get in on the irritable bowel syndrome treatment market. Bausch may not be able to fend these entrants off so readily. With Bausch’s last earnings report proving a double-miss disappointment, Bausch needs all the advantages it can get as it struggles to make a comeback.
Meanwhile, insider trading at Bausch Health shows a lot of insiders who missed out on today’s huge gains. In fact, insider sentiment at Bausch is currently “Very Negative,” as insiders sold off $539,600 in shares just over the last three months.
