Alembic Pharma soars on settlement with Novartis on patent litigation

Novartis has allowed Breckenridge and Alembic market generic version of Exelon before expiry of US patent on Feb 11, 2014

Alembic Pharmaceuticals has moved higher by 6% to Rs 54.60 after the mid-cap pharmaceutical company said that it has settled the Paragraph IV patent litigation with Novartis on Rivastigmine Tartrate Capsules.

“Breckenridge and Alembic Pharmaceuticals have settled their Paragraph IV patent litigation with Novartis concerning Rivastigmine Tartrate Capsules, a generic version of Exelon by Novartis, and that the U.S. Food and Drug Administration (FDA) approved their Abbreviated New Drug Application (ANDA),” Alembic Pharmaceutical said in a filing.

Under the terms of the settlement agreement, Novartis has granted Breckenridge and Alembic a license to market a generic version of Exelon before the expiration of U.S. Patent No. 5,602,176, on February 11, 2014.

Alembic Pharmaceuticals is the sponsor and manufacturer of the ANDA, which will be marketed exclusively by Breckenridge. The companies will the product launch immediately, it added.

The stock opened at Rs 51.25 and hit a high of Rs 55.40 after the announcements on the National Stock Exchange. A combined 360,319 shares have changed hands on the counter so far on both the exchanges.