Shares of recent high-flier Merus Labs (TSX:MSL) are off today after learning that competition is looking to enter a market that represents an increasing portion of its topline.
Merus says it has learned that Toronto-based pharma Apotex has filed with Health Canada an abbreviated new drug submission seeking market approval for a generic version of Enablex, which is used to treat symptoms of overactive bladder.
Until recently, Enablex represented only about 12% of the company’s topline, but it grew to more than 80% in its recently reported second quarter.
Merus says its multiple patents on Enablex don’t expire until August of 2016 and it will “pursue all available legal and regulatory pathways in defense of the product.”
Merus derives the bulk of its revenue from Enablex and from C.difficile treatment Vancocin, which produced $1.21-million of the company’s $6.69-million in revenue in its Q2, reported in mid-May.
Weston Ontario-based Apotex is the largest producer of generic drugs in Canada, with more than a billion dollars in annual revenue.
Shares of Merus have been rising for more than a year, reversing a downward trend that saw it bottom at $0.48 last May 14th. Shares climbed to a recent high of $1.91 on March 11th.
At press time, shares of Merus Labs were down 2.3% to $1.69.