Why Bausch Health Companies Stock Is Tanking Today
Shares of Bausch Health Companies (NYSE: BHC) were down by 11.3% on sky-high volume as of 10:56 a.m. ET Tuesday morning. The big loss came after the drugmaker announced that the Food and Drug Administration (FDA) tentatively approved the abbreviated new drug application (ANDA) from Norwich Pharmaceuticals for the irritable bowel syndrome medication Xifaxan on June 2, 2023.
Earlier this year, Bausch won a favorable ruling from the U.S. District Court of Delaware barring the FDA from officially approving an ANDA for Xifaxan until Oct. 2, 2029. In its June 2, 2023 letter, the FDA reportedly reaffirmed this later date as the benchmark for final approval.
Xifaxan has consistently been one of the biggest growth drivers within Bausch's Salix Pharmaceuticals subsidiary over the past few years. As such, the availability of a cheap, generic rival is indeed cause for worry for the drugmaker's shareholders.
Source Fool.com
