Cipla settlement litigation with Celgene - Angel Broking

Mr. Yash Gupta - Equity Research Associate, Angel Broking Ltd

Cipla Limited 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, as described below. 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 March 2022. For each consecutive twelve month period (or part thereof) following the volume-limited entry date until January 31, 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. This is a very positive development for the company, as Cipla can sell limited quantities of drugs till January 2026and after that company can sell unlimited quantities of generic lenalidomide in the USA. We expect this product will help Cipla to gain market share in the USA market.

Shares of CIPLA LTD. was last trading in BSE at Rs.789.25 as compared to the previous close of Rs. 755.9. The total number of shares traded during the day was 816022 in over 21434 trades.

The stock hit an intraday high of Rs. 792.8 and intraday low of 772. The net turnover during the day was Rs. 641586244.

Source : Equity Bulls

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