Cipla: Settles litigation
Shares of Cipla rallied 5% Monday after the drug maker reached the settlement of its litigation with Celgene Corporation.
Cipla announced the settlement of its litigation with Celgene Corporation, and wholly-owned subsidiary of Bristol Myers Squibb relating to patents for REVLIMID (lenalidomide).
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 the March 2022.
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.
Reaching a settlement with Celgene, will help Cipla in its pursuit of improving access to high quality life-saving treatments. The drug maker has surprised positively with settlement on gRevlimid and is expected to lead to a potential entry in FY23.
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