Davos-2022
Davos-2022
Davos-2022
Davos-2022
This article is more than 1 year old.

Cipla shares rally 4% after it settles litigation with Celgene Corp for cancer drug Revlimid

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Cipla shares rallied more than 4 percent in early trade on Monday after the phamra company announced the settlement of its litigation with Celgene Corporation relating to patents for cancer drug Revlimid (lenalidomide).

Cipla shares rally 4% after it settles litigation with Celgene Corp for cancer drug Revlimid
Cipla shares rallied more than 4 percent in early trade on Monday after the phamra company announced the settlement of its litigation with Celgene Corporation relating to patents for cancer drug Revlimid (lenalidomide).
In an exchange filing, Cipla said that as part of the settlement, the parties will file Consent Judgments with the United States District Court for the District of New Jersey that enjoin Cipla from marketing generic lenalidomide before the expiration of the patents-in-suit, except as provided for in the settlement.
In settlement of all outstanding claims in the litigation, Celgene has agreed to provide Cipla with a license to Celgene’s patents required to manufacture and sell certain volume-limited amounts of generic lenalidomide in the United States beginning on a confidential date that is some time after March 2022.
For each consecutive 12-month period (or part thereof) following the volume-limited entry date until January 31, 2026, the volume of generic lenalidomide sold by Cipla cannot exceed certain agreed upon percentages.
The specific volume-limited license date and percentages agreed upon with Cipla are confidential.
Cipla settles patent litigation for cancer drug Revlimid with Celgene in US
In addition, Celgene has agreed to provide Cipla with a license to Celgene’s patents required to manufacture and sell an unlimited quantity of generic lenalidomide in the United States beginning no earlier than January 31, 2026.
Cipla’s ability to market lenalidomide in the US will be contingent on its obtaining approval of an Abbreviated New Drug Application.
“This is an important step forward for us and is in line with our pursuit of improving access to high quality life-saving treatments,” said Arunesh Verma, CEO, Cipla North America.
The stock price of Cipla jumped as much as 4.88 percent to Rs 792.80 apiece on the BSE. At 9:40 am, the shares traded 3.63 percent higher at Rs 783.35 as compared to a 0.43 percent gain in the benchmark Sensex.
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