Bausch Health stock soars after company says rival application for generic version of its IBS drug can't be approved until 2029

Bausch Health Cos. Inc. (BHC.T) on Wednesday said a U.S. district court stuck with an earlier judgment that prevented an application for a rival generic version of its Xifaxan irritable bowel syndrome drug from getting FDA approval until 2029, sending shares higher during regular and after-hours trade. The company and its gastroenterology business Salix Pharmaceuticals said in a statement that the U.S. District Court of Delaware denied a motion by Norwich Pharmaceuticals -- which wants to develop a generic version of the drug -- to alter the court's final judgment on the matter. That judgment keeps the FDA from approving Norwich's abbreviated new drug application for Xifaxan before Oct. 2, 2029. The ruling stems from a patent-infringement lawsuit against Norwich brought by Bausch and Salix in 2020. "It is our long- standing position that the Xifaxan patent claims are valid and infringed by Norwich's (abbreviated new drug application)," Bausch Health Chief Executive Thomas Appio said in a statement on Wednesday. Shares rose 3.4% after hours, after finishing 24.1% higher during regular trading.

-Bill Peters

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05-17-23 1935ET

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