Dr Reddy's Labs Shares Increase To Record High After Company Settles Patent Litigation With Celgene

 - Sakshi Post

Dr Reddy's Laboratories' shares rose nearly 10 percent on September 18 to reach their fresh record high of Rs 5,302.85 on BSE. The price of shares increased to a record high on Friday, after the drug manufacturer said it had settled a patent litigation over Revlimidid cancer treatment with the US-based Bristol-Myers Squibb's subsidiary, Celgene.

Dr Reddy's said in a regulatory filing after market hours on Thursday, "In settlement of all outstanding claims in the litigation, Celgene has agreed to provide Dr. Reddy's with a license to sell volume-limited amounts of generic lenalidomide capsules in the US beginning on a confidential date after March 2022 subject to regulatory approval."

The company said that it has released an over-the-counter ( OTC) eye allergy drop Olopatadine Hydrochloride Ophthalmic Solution in the US market on September 16.

Marc Kikuchi, CEO, North America Generics, Dr Reddy's Laboratories asserted that, "We are pleased with the settlement agreement, and look forward to bringing a generic version of lenalidomide to market soon subject to regulatory approval for the benefit of patients."

Global financial company Citi has a buy recommendation on the stock with a target price of Rs 5,000. Citi said that, "This is the third settlement for Revlimid after those of Natco and Alvogen and we assume the company will be able to launch Revlimid generic in September 2022."

The Nifty Pharma index captures the country's output of 10 drug makers including Dr Reddy's, Lupin, Cipla, and Sun Pharma jumped up to 3.66 percent.

Dr Reddy's Laboratories shares traded 5.22 percent higher at Rs 5,078.75 a piece on the BSE at 9:53 am today, surpassing the S and P BSE Sensex benchmark index, which grew by 0.34 percent amid gains across sectors.

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