Claris Lifesciences jumps after settlement of patent litigation for a generic drug

Claris Lifesciences jumped 4.79% to Rs 323.80 at 10:47 IST on BSE after the company said it has reached a settlement on litigations and license agreement for its generic DIPRIVAN in USA.

The announcement was made during market hours today, 20 April 2015.

Meanwhile, the S&P BSE Sensex was down 203.11 points or 0.71% at 28,238.99.

On BSE, so far 3.70 lakh shares were traded in the counter as against average daily volume of 2.04 lakh shares in the past one quarter.

The stock hit a high of Rs 334 and a low of Rs 314.80 so far during the day. The stock had hit a record high of Rs 358 on 13 April 2015. The stock had hit a 52-week low of Rs 141.25 on 2 June 2014.

The stock had outperformed the market over the past one month till 17 April 2015, surging 11.31% compared with Sensex's 1.02% fall. The scrip had also outperformed the market in past one quarter, jumping 70.15% as against Sensex's 1.14% rise.

The small-cap company has equity capital of Rs 54.57 crore. Face value per share is Rs 10.

Claris Lifesciences said it has reached a settlement and license agreement, ending all pending litigation with Fresenius Kabi USA, Inc. with reference to the alleged infringement of a patent relating to Propofol for Injection, 10 mg/ml, which is a generic version of DIPRIVAN. Under the terms of the settlement and license agreement, Claris and Claris Lifesciences Inc. (USA) has been granted approval to sell its generic version of Propofol for Injection beginning 15 October 2016, prior to the 1 June 2025 expiry of the patent that formed the basis of the litigation.

According to IMS Health data as of June 2014, Propofol Injection had an annual market size of approximately $251 million in the USA.

On consolidated basis, Claris Lifesciences' net profit jumped 406.2% to Rs 89.85 crore on 24% growth in net sales to Rs 179.15 crore in Q4 December 2014 over Q4 December 2013.

Claris Lifesciences is one of the largest sterile injectables pharmaceutical companies in India. The company manufactures and markets products across various therapeutic segments including anesthesia, plasma volume expanders, blood products, parental & enternal nutrition, infusion therapy, anti-infective and renal care.

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