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Celgene Settles U.S. Patent Litigation for Revlimid

December 23, 2015, 12:21 AM UTC
Inside Teva Pharmaceuticals Headquarters
An employee collects newly-manufactured pills at the tablet production plant at Teva Pharmaceutical Industries Ltd.'s headquarters in Jerusalem, Israel, on Monday, Sept. 19, 2011. Teva, the world's largest maker of generic drugs, will invest $19 million in the CureTech Ltd. unit of Clal Biotechnology Industries Ltd. Photographer: Adam Reynolds/Bloomberg via Getty Images
Photograph by Adam Reynolds — Bloomberg via Getty Images

Dec 22 (Reuters) – Celgene Corp. (CELG) said it would allow for the sale of a generic version of its flagship multiple myeloma drug, Revlimid, in the United States over a year before patents covering the drug expire.

The company said it would provide India-based Natco Pharma Ltd. and its U.S. partner, Arrow International Ltd., a unit of Allergan Plc (AGN), the license to Celgene’s patents required to manufacture and market an unlimited quantity of generic Revlimid beginning Jan. 31, 2026 as part of a patent litigation settlement.

Patents covering Revlimid in the United States expire in April 2027.

Natco will also receive a “volume-limited” license to sell in the United States commencing in March 2022, Celgene said.

“Though this represents a compromise, overall we view the settlement as a positive, removing a major overhang on shares and enabling a clearer road toward lower-risk long-term growth,” Jefferies analysts wrote in a note.

Revlimid is a big seller for the biotechnology company and accounted for about 63 percent of the $2.3 billion in total sales earned in the quarter ended Sept. 30.

Summit, New Jersey based Celgene’s stock rose about 9 percent to $121 in extended trade.

(Reporting by Natalie Grover in Bengaluru; Editing by Sriraj Kalluvila and Dan Grebler)