William Blair analyst Tim Lugo views the 26% selloff in shares of Eagle Pharmaceuticals (EGRX) since marketing partner Teva (TEVA) issued 2017 financial guidance as overdone. Teva's outlook included a range of $600M-$660M for Bendeka/Treanda, which reflects expectations of a mid-single-digit volume decrease and no price offsets. The range was below Lugo's expectations by 13%-21%. While negative growth in Bendeka is concerning, with modest pipeline execution, Eagle's shares could see "significant" price appreciation by the end of 2017, Lugo tells investors in a research note. He keeps an Outperform rating on the shares.

Vanda Pharmaceuticals "announced that the Supreme Court denied Vanda's petition for a writ of certiorari in its HETLIOZ(R) Abbreviated New Drug Application litigation against Teva Pharmaceuticals USA, Inc., Apotex Inc. and Apotex Corp." CEO Mihael H. Polymeropoulos stated: "We are disappointed that the Supreme Court has decided not to hear our case and clarify the lower court standard for obviousness in patent law. However, we are pleased that our case has drawn attention to an area of law that has broad and significant implications in life sciences innovation."