Novartis (NVS) Sets New 52-Week Low on Marcogol Hexal Court Ruling

Shares of Novartis AG (NYSE: NVS) are tumbling today on news that Norgine Pharmaceuticals has obtained a court ruling which prevents further distribution of Novartis' Marcogol Hexal product. A Hamburg District Court ruled that Novartis has been illegally distributing the product as a "medical device".

According to the court, Novartis' Marcogol Hexal must undergo an extensive review process in order to ensure the quality, safety and efficacy of the product. The court said that Novartis has incorrectly classified the product as a "device", avoiding important product-specific scrutiny by health officials. The Hamburg court noted that it will enforce the ruling, although the subject is still available for appeal.

Novartis stock has hit a new 52-week low on the news, falling $1.82, or 3.6%, to $48.51. Shares of Novartis have slightly bounced off their lows of the session, but still remain under pressure moving into the afternoon trading session.

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