(Adds details, analyst’s comment)
BANGALORE, March 7 (Reuters) - Dusa Pharmaceuticals Inc. (DUSA.O) said a U.S. district court lifted a preliminary injunction which prohibited River’s Edge Pharmaceuticals LLC from selling the generic version of Dusa’s acne drug Nicomide.
Shares of the company, which fell to their year-low of $3.15 earlier, were trading at $3.34 in afternoon trade on the Nasdaq.
Nicomide was “very important” for the company and it accounted for 35 percent to 40 percent of Dusa’s sales in the latest third quarter, Roth Capital Partners analyst Mark Taylor said by phone.
Taylor said Dusa acquired Sirius Laboratories mainly for Nicomide.
In March 2006, River’s Edge filed a lawsuit, just days after Dusa closed its acquisition of Sirius, alleging that Sirius agreed to authorize it to market a generic version of Nicomide.
“River’s Edge launched a generic against Nicomide two weeks after the acquisition closed and wound up taking 30 percent of the Nicomide business before Dusa was able to get a preliminary injunction against them,” Taylor said.
“Now that the preliminary injuntion has been lifted we presume River’s edge will launch again and Nicomide is going to suffer a loss of share,” he added. (Reporting by Rakesh Sharma in Bangalore)