Zydus Life Shares Soar 3% Settling Dispute with Astellas 

Shares of Zydus Lifesciences Ltd soared 3% higher on 12 February after the company announced settling a dispute with Astellas Pharma. 

Zydus Lifesciences and its US subsidiary will pay $120 million to Astellas Pharma to resolve a patent dispute related to the Japanese drugmaker’s bladder disorder drug, Mirabegron, the company said in an exchange filing on Thursday, February 12.

Under the agreement, Zydus and its US arm will also pay a prepaid per-unit licensing fee on sales of their generic Mirabegron in the US from the date of the settlement until September 2027.

The settlement allows Zydus to continue marketing its generic version of Mirabegron in the US, while the companies have kept the remaining terms of the agreement confidential.

The development follows a similar move by Lupin Ltd., which recently agreed to pay $90 million to Astellas to settle its own dispute over the same drug.

Analysts noted at the time that these settlements could delay the entry of additional generic players into the US market, potentially giving Zydus and Lupin a temporary window of limited competition.

Zydus said the settlement resolves all pending litigation with Astellas and enables the company to continue selling its generic Mirabegron in the US market.

At 12:31 pm, the shares of Zydus Lifesciences were trading 2.34% higher at Rs 919.35 on NSE. 

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