Sun Pharma shares surged after a settlement with Incyte over Leqselvi, a drug for severe hair loss. The agreement includes a license for US patents and Leqselvi launch in the US market.
The company’s stock went up by 2.71 per cent to settle at Rs 1,727.70 apiece on the BSE. During the day, it rallied 2.90 per cent to Rs 1,730.95.
On the NSE, it climbed 2.75 per cent to Rs 1,729 per share.
Under the terms of the agreement, the parties will seek dismissal of the pending Leqselvi litigation in the US District Court for the District of New Jersey, and Sun and Incyte will mutually release each other of all claims that were raised or could have been raised in that litigation, the Mumbai-based drug major said in a statement on Monday.
As a part of the agreement, Incyte has granted to Sun a limited, non-exclusive license to US Patent Nos. 9,662,335 and certain other related patents with respect to oral deuruxolitinib for certain agreed-upon non-hematology-oncology indications, including alopecia areata, in the US, it added.
Sun will pay Incyte an upfront amount, plus ongoing royalty payments until the expiry of the patents, in exchange for the settlement and license, it stated.
Other specific terms of the settlement and license agreement are confidential, it added.
In a separate statement, the drug firm announced the launch of Leqselvi (8 mg) tablets in the US market.
The medication (deuruxolitinib) is indicated for the treatment of adults with severe alopecia areata.
