Divi’s Laboratories shares tumble over 4% as MSN wins patent litigation for Novartis’ heart-failure drug

Shares of Divi's Laboratories declined as much as 4.24% to an intraday low of ₹6,545 apiece on the National Stock Exchange (NSE) on Monday, July 14. The drop in stock price came after MSN Pharmaceuticals won patent litigation in a Delaware federal court to launch the generic version of Novartis’ heart-failure drug Entresto.

The ruling has opened a path for MSN to launch the generic heart-failure drug as early as July 15, 2025. With Novartis’ patent expiring in November 2026, it sought to block the launch of Entresto’s generic version until expiry.

Divi's Laboratories is a key supplier of Entresto’s active pharmaceutical ingredients (API). As per estimates, it accounts for 40% of the company’s Custom Synthesis (CS) revenue and makes up about 20% of its consolidated revenue from operations.

As per IIFL Securities, the development could lead to a 12-13% decline in Divi’s EBITDA (earnings before interest, tax, depreciation and amortisation).

Entresto is Novartis’s best-selling drug and generated more than $6 billion in revenue for the company in 2024. The Switzerland-headquartered firm said it was disappointed with the ruling and planned to appeal.

Divi’s Laboratories' final dividend

In May, the pharmaceutical’s board of directors recommended a final dividend of ₹30 per equity share (1,500%) with a face value of ₹2 each for the 2024-25 financial year, subject to shareholder approval at the ensuing annual general meeting (AGM) on August 11, 2025.

Furthermore, the board also fixed July 25, 2025, as the record date for the purpose of payment of the dividend.

Divi's Laboratories' stock performance

At the time of writing, shares of Divi Lab were trading 0.66% lower at ₹6,790 apiece on the NSE.

The stock lost 1.04% over the previous week and 0.67% since the beginning of July. However, the scrip gained 17.90% in the first quarter of FY26 and 10.84% on a year-to-date basis.

It reached a year’s high of ₹7,071.50 apiece on July 8, 2025, and a 52-week low of ₹4,395.30 almost a year ago on July 23, 2024.

Divi’s Laboratories has a total market capitalisation of ₹1.79 lakh crore, as of July 14, 2025, as per data on the NSE.