Cipla hits 52 week high as litigation with Celgene Corporation gets settled

Cipla’s share price rallied 5 percent on December 14th’s early trade just after the company’s matter with Celgene Corporation got clear and they reached the settlement of its litigation with them.

Cipla’s stakes touched its 52-week high share price at Rs 829.00 per share and 52-week low at Rs 356.75 per share on October 13, 2020, and March 13, 2020, respectively.

Cipla is currently trading 4.57 percent below its 52-week high price and 121.75 percent above its 52-week low price.

The company made known to everyone, the settlement of its litigation with a wholly-owned subsidiary of Bristol Myers Squibb regarding the patents for REVLIMID (lenalidomide) and Celgene Corporation.

Both the parties are required to file consent judgments as a part of this settlement with the United States District Court for the District of New Jersey that command Cipla from marketing generic lenalidomide before the expiration of the patents-in-suit, except as provided for in the settlement.

As all the outstanding claims in the litigation stand settled, Celgene has affirmed to provide Cipla with a license to Celgene’s patents which is mandated to manufacture and sell certain controlled doses of generic lenalidomide in the United States beginning on a date kept confidential date but might be some time after March 2022, company said in the press release.

“Celgene has agreed to provide Cipla with a license to Celgene’s patents required to manufacture and sell an unlimited quantity of generic lenalidomide in the United States beginning no earlier than January 31, 2026,” it added.

“This is an important step forward for us and is in line with our pursuit of improving access to high-quality life-saving treatments,” Arunesh Verma, CEO, Cipla North America said.

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