Santorus vs. PRX Patent Dispute
Thursday, April 15, 2010
POSTED BY Ricardo Bekin / 1 COMMENTS
Yesterday a court ruled against Santorus (SNTS) and in favor of Par Pharmaceuticals (PRX) in a patent dispute. PRX wants to produce a generic version of Zegerid, Santorus’ heartburn medication. Today SNTS is down $1.73, meaning it has lost approximately $101 million in market cap, while PRX is up $1.57, giving it a gain of $55 million. The difference between the two amounts, $46 million, is presumably a net transfer of value to other competitors who may be able to also sell generic versions of Zegerid and most of all to consumers, who will benefit from a lower price for their medication. SNTS has said it will appeal, of course.