Dr.Reddy's Laboratories shares surged more than 5 per cent to a record high on Friday, after the Hyderabad-based drug maker said it had settled a patent litigation with US-based Bristol-Myers Squibb's unit, Celgene, over cancer treatment Revlimid. The Dr Reddy's stock jumped by Rs 263.05 (5.45 per cent) to quote at Rs 5,089.65 apiece on the BSE in early deals, having begun the day stronger at Rs 5,001.00 compared to its previous close of Rs 4,826.60. (Track Dr Reddy's Shares)
"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," Dr Reddy's said in a regulatory filing after market hours on Thursday.
Celgene is a wholly-owned subsidiary of Bristol Myers Squibb.
Dr Reddy's further said that the agreed percentages are confidential, and it is also licensed to sell generic lenalidomide capsules in the US without volume limitation beginning January 31, 2026.
"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," said Marc Kikuchi, CEO, North America Generics, Dr Reddy's Laboratories.
Dr Reddy's Labs shares were among the top boosts to the benchmark NSE Nifty 50 index.
The Nifty Pharma index - which captures the performance of 10 drug makers in the country, including Dr Reddy's, Lupin, Cipla and Sun Pharma - jumped as much as 3.66 per cent.
At 9:53 am, Dr Reddy's Laboratories shares traded 5.22 per cent higher at Rs 5,078.75 apiece on the BSE, outperforming the benchmark S&P BSE Sensex index which was up 0.34 per cent amid gains across sectors.