Shire share price: Drugmaker scores victory in Vyvanse patent case

on Jun 25, 2014
Updated: Apr 9, 2020
Listen, Wednesday, June 25: Shire Plc (LON:SHP) has scored a legal victory in the US with a court ruling preventing the introduction of generic competitors to the company’s top-selling attention deficit hyperactivity disorder (ADHD) drug Vyvanse.

Shire’s share price has added just under 0.7 percent in London trading so far this morning.
**New Jersey court ruling**
Dublin-based Shire said today in a statement that Judge Stanley R. Chesler of the US District Court for the District of New Jersey had granted the company’s summary judgment motion in a patent infringement lawsuit, holding that certain claims of the patents protecting Vyvanse were both infringed and valid.

Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.

The ruling prevents five pharmaceutical manufacturers from launching generic versions of Shire’s drug until either a successful appeal, or the expiration of the patents in 2023.
The decision includes 18 patent claims covering Vyvanse’s active ingredient, lisdexamfetamine dimesylate, and a method of using the compound for the treatment of ADHD.
“We are extremely pleased with the court’s ruling, which affirms Shire’s belief that it has strong patents protecting Vyvanse,” the biopharma company’s chief executive Flemming Ornskov said in the statement.

**Top-selling drug**
Vyvanse is Shire’s top-selling ADHD treatment, accounting for 26 percent of the company’s total revenue in the first quarter. Last month, the biopharma group reported that sales from the drug had climbed 18 percent year-on-year to $351.2 million (£207 million) in the quarter ended March 31.
Shire recently agreed to a request by the US Food and Drug Administration (FDA) to test Vyvanse on pre-school children, with the move potentially entitling the company to a six-month extension to its patent for the drug. (Shire share price: Company to test top-selling drug on pre-school children)

Earlier this week, Shire highlighted the potential of Vyvanse in an attempt to fend off a takeover approach by US drugmaker AbbVie Inc (NYSE:ABBV), noting that it was currently testing the drug as a treatment for binge eating disorder (BED). (Shire share price: Company takes leaf out of AstraZeneca’s playbook) Ornskov told investors that Vyvanse could be on the market for BED as early as 2015, potentially bringing in an additional $300 million on top of its regular sales in 2020.

Vyvanse, however, earlier this year disappointed in two late-stage clinical trials to treat adults with major depressive disorders. (Shire share price slides as Vyvanse disappoints in depression studies)
**Analysts on Shire**
As of June 22, the consensus forecast amongst 33 polled investment analysts covering Shire for the Financial Times advises that the company will outperform the market.
Analyst Ratings Network reports that the FTSE 100 biopharma company currently has a consensus ‘buy’ rating and an average price target of 3,011.66p.
**As of 08:01 BST, buy Shire shares at 4417.00p.**
**As of 08:01 BST, sell Shire shares at 4410.00p.**


Want easy-to-follow crypto, forex & stock trading signals? Make trading simple by copying our team of pro-traders. Consistent results. Sign-up today at Invezz Signals™.

Learn more
Health & pharma Stock Market