Shares of Bausch Health Companies Inc. BHC, -9.41% dropped 7.8% in morning trading Friday, toward a 27-year low, after the drug and medical device maker confirmed a disappointing court decision regarding its patents protecting Xifaxan for treating irritable bowel syndrome. The stock had plunged 41.2% on Thursday after Bloomberg reported that some of the patents were ruled to be invalid. After Thursday’s closing bell, Bausch Health said the U.S. District Court of Delaware issued an Oral Order, regarding litigation with Norwich Pharmaceuticals Inc., indicating the court will find certain U.S. patents protecting Xifaxan for the reduction of risk of hepatic encephalopathy (HE) recurrence valid and infringed, but U.S. patents protecting the composition and use of Xifaxan for treading IBS-D invalid. The company said it will consider all options to “vigorously defend” the patents when the court enters a final order. “We are disappointed with today’s development,” said Chief Executive Thomas Appio. “We strongly disagree with any conclusion that our patents are not valid and intend to file an appeal to any such order.” The stock, which is on track for the lowest close since December 1995, has plummeted 75.3% over the past three months, while the S&P 500 SPX, +1.42% has slipped 0.5%.
