Leerink believes the District Court of New Jersey's judgment last night in favor of the generic challengers in the Pulmicort Respule patent dispute was not expected by investors. The firm notes Actavis (ACT) and Apotex will be able to launch generic versions of Pulmicort Respule imminently as a result of the ruling. Leerink believes Pulmicort has been a significant earnings contributor for Teva, who has been paying royalties on sales of its generic version of the drug to AstraZeneca (AZN). The firm estimates the introduction of two new generics will lower Teva's revenue by $250M-300M and earnings by 10c.
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