Cipla spurts on settling litigation with Celgene Corp for cancer drug Revlimid

Cipla rose 3.70% to Rs 783.85 after the drug major announced the settlement of its litigation with Celgene Corporation relating to patents for Revlimid (lenalidomide).

In the US, Revlimid (lenalidomide) in combination with dexamethasone is indicated for the treatment of patients with multiple myeloma.

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.

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 the March 2022.

For each consecutive twelve-month period following the volume-limited entry date until 31 January 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.

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 31 January 2026. Cipla's ability to market lenalidomide in the U.S. will be contingent on its obtaining approval of an Abbreviated New Drug Application.

Arunesh Verma, CEO, Cipla North America said: "This is an important step forward for us and is in line with our pursuit of improving access to high quality life-saving treatments."

The drug major reported a 37.8% jump in consolidated net profit to Rs 661.85 crore on 16.6% increase in net sales to Rs 4,972.58 crore in Q2 FY21 over Q2 FY20.

Cipla is a global pharmaceutical company focused on complex generics, and deepening its portfolio in the markets of India, South Africa, North America, and key regulated and emerging markets.

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