Shares of Dr Reddy's Laboratories today soared nearly 10 per cent after Nasdaq-listed Vivus Inc entered into a settlement agreement with the company to resolve a long-pending patent litigation related to weight management capsule Qsymia.
The stock surged 9.75 per cent to settle at Rs 2,217.35 on BSE. During the day, it zoomed 10.38 per cent to Rs 2,230.20.
On NSE, it climbed 9.73 per cent to close at Rs 2,217.55.
The stock was the biggest gainer on both the key indices during the day.
The company's market valuation rose by Rs 3,255.86 crore to Rs 36,753.86 crore.
In terms of volume, 2.44 lakh shares of the company were traded on BSE and over 36 lakh shares changed hands at NSE during the day.
According to a statement issued yesterday by the US-based drug maker, the litigation, pending since 2015, resulted from the submission of an Abbreviated New Drug Application (ANDA) by Dr Reddy's seeking approval to market generic versions of Qsymia.
The settlement permits the Hyderabad-based drugmaker to begin selling a generic version of Qsymia from June 2025, or earlier under certain circumstances. In the event of an early launch, Vivus will receive a royalty on sales of the generic version of the drug.
Qsymia (phentermine and topiramate extended-release) capsules CIV is used to manage chronic overweight in adults with obesity symptoms.
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