In a major disappointment for Novartis (NYSE:NVS), the U.S. Supreme Court rejected the company’s request to block a Federal Circuit mandate that would allow the generic versions of its blockbuster multiple sclerosis drug Gilenya, Reuters reported.
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Gilenya is one of Novratis’ top-selling drug and generated sales of $2.8 billion in 2021. In late September, the U.S. Supreme Court’s Chief Justice John Roberts agreed to temporarily stay the mandate from the US Court of Appeals for the Federal Circuit regarding the validity of a key patent for Gilenya.
With the U.S. Supreme Court denying further stay on the Federal Circuit mandate invalidating Novartis’ patent, the company is at the risk of heightened generic competition for Gilenya. The company expects to lose $300 million in sales in Fiscal 2022 if generics for Gilenya are launched in the U.S.
China’s HEC Pharma and several other companies have the U.S. Food and Drug Administration’s (FDA) approval to launch generic versions of Gilenya.
Is NVS a Buy?
Novartis stock has declined 13.1% year-to-date.
Currently, NVS stock has a Very Negative Hedge Fund Confidence Signal based on the activity of 15 hedge funds in the recent quarter. Overall, hedge funds decreased their holdings in NVS stock by 5.2 million shares in the last quarter.
