Heron Shares Surge After Victory in Patent Lawsuit

Biotechnology company Heron Therapeutics, Inc. (NASDAQ:HRTX) experienced a significant increase of 66% in its share price during pre-market trading on Wednesday, following a favorable ruling from the U.S. District Court in Delaware in a patent lawsuit against Fresenius Kabi USA, LLC concerning its injectable emulsion drug CINVANTI® (aprepitant).

The lawsuit, initiated in July 2022, was filed by Heron after Fresenius submitted an Abbreviated New Drug Application to the U.S. Food and Drug Administration for approval of a generic version of CINVANTI®. The court ruling upheld the validity of Heron's U.S. Patents 9,561,229 and 9,974,794, which will not expire until 2035, determining that Fresenius’s proposed generic product would infringe these patents.

As a result of the court decision, Heron plans to seek an injunction to prevent Fresenius from launching a generic version of CINVANTI® until the expiration of the patents. However, it is important to note that the ruling is still subject to appeal.

Heron's CEO Craig Collard expressed satisfaction with the court ruling, stating, "We are pleased with the anticipated outcome of this case and will continue to vigorously defend the CINVANTI® patent portfolio." He also highlighted the company's commitment to developing injectable products and the strength of its intellectual property.

The court ruling is a significant development for Heron, as it protects the company’s exclusive marketing rights for CINVANTI® until the patents expire. This injectable emulsion is utilized in the medical field to address unmet critical needs in patient care.