Why Shares of Bausch Health Soared Wednesday
Shares of Bausch Health (NYSE: BHC) were up more than 27% late Wednesday afternoon because the company announced it had received a favorable court ruling affecting one of its leading therapies. The stock is up more than 19% so far this year.
The healthcare company announced that the U.S. District Court of Delaware had ruled in its favor in a lawsuit by Bausch wholly owned subsidiary Salix Pharmaceuticals against Norwich Pharmaceuticals. Norwich was asking the court to modify its judgment that prevents the Food and Drug Administration (FDA) from approving an Abbreviated New Drug Application (ANDA) for a Norwich generic version of Xifaxan (rifaximin) until October 2, 2029.
Xifaxan is a treatment for irritable bowel syndrome. The ruling means that Bausch will likely not face generic competition for the therapy for at least six more years.
Source Fool.com
