Jazz Pharmaceuticals Plc (JAZZ) climbed to its highest value ever after winning a federal judge’s support in a patent dispute over its best-selling medicine Xyrem to treat narcolepsy.
Jazz increased 15 percent to $55.29 at 4 p.m. New York time. The Dublin-based company rose to its highest price since the shares began trading in June 2007.
U.S. District Judge Esther Salas sided with Jazz on the interpretation of most disputed terms in eight patents in its suit against Roxane Laboratories Inc., Corey Davis, an analyst for Jefferies & Co., wrote in a note today. In patent cases, the judge’s interpretation of disputed terms forms the baseline for all legal arguments that follow.
“At first blush this seems like a clear win for Jazz,” wrote Davis, who is based in New York.
The case was filed in November 2010 in federal court in Newark, New Jersey. The two sides argued over how to interpret the patents in April. No date has been set for further proceedings based on the judge’s ruling, Bill Craumer, a company spokesman, said.
Jazz asked the Food and Drug Administration in July to rescind Roxane’s application for a generic version of Xyrem. The drug brought in $233 million last year, according to data compiled by Bloomberg.