Shares of Dr Reddy’s Laboratories surged almost 10% to hit their fresh record high of Rs 5,302.85 on BSE on September 18, and extended its weekly gains to 20% after the drugmaker settled a patent litigation with US-based Bristol-Myers Squibb’s unit, Celgene, over cancer treatment Revlimid.
Celgene’s cancer drug Revlimid had raked in $2.9 billion in June-quarter sales.
Further, the drug makers shares received a boost after it reached an agreement with Russia’s sovereign wealth fund RDIF for supply of 10 crore doses of Sputnik V COVID-19 vaccine upon getting regulatory approval in India.
The Russian Direct Investment Fund is collaborating with Dr Reddy’s Laboratories to conduct clinical trials of the Sputnik V vaccine against COVID-19 as well as its distribution.
India’s pharma sector index has surged 51% so far this year with Dr Reddy’s Laboratories climbing 82% year to date.
In settlement of all outstanding claims in the litigation, Celgene has agreed to provide the company 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.
On September 16, Dr Reddy’s launched an over-the-counter (OTC) eye allergy drop Olopatadine Hydrochloride Ophthalmic Solution in the US market.
The drug maker is already licensed to sell generic lenalidomide capsules in the US without volume limitation beginning on January 31, 2026.
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