(Reuters) – A U.S. appeals court on Friday ruled invalid patents owned by Jazz Pharmaceuticals PLC covering its narcolepsy drug Xyrem, opening the door for Amneal Pharmaceuticals Inc to launch a generic version of the medicine.
The U.S. Court of Appeals for the Federal Circuit affirmed a series of rulings in favor of Amneal that the Jazz patents described obvious ideas.
Jazz and Amneal did not immediately respond to requests for comment. Shares of Jazz fell 2.5 percent to $175 in morning trading, while Amneal was up 1 percent to $18.50.
Amneal had asked an administrative court run by the U.S. Patent and Trademark Office to cancel the patents in hopes of bringing a generic version of Xyrem to market.
The patent tribunal sided with Amneal in 2016, prompting an appeal by Jazz.
Xyrem generated more than $1.1 billion in sales in 2017, accounting for about 70 percent of Jazz’s revenue.
Xyrem is an approved treatment for both excessive daytime sleepiness and cataplexy in patients with narcolepsy, a chronic neurological disorder.
Reporting by Jan Wolfe; Editing by Chizu Nomiyama and Dan Grebler