India's Zydus Lifesciences settles bladder drug patent dispute with Astellas for $120 mn

India's Zydus Lifesciences and its US unit will pay $120 million to Astellas Pharma to settle a patent dispute over the Japanese company's bladder disorder drug Mirabegron, the Indian firm said in a filing to the exchanges on Thursday, February 12.

Additionally, Zydus and its US unit will pay a pre-paid per unit licensing fee on sales of its generic Mirabegron in the US from the date of the agreement until September 2027.

This arrangement allows the company to continue marketing its generic Mirabegron in the US, with other terms of the agreement remaining confidential.

Shares of Zydus Lifesciences were up 2.30% and traded at ₹918.75 apiece on the BSE as of 10:49 am.

This news comes shortly after Lupin Ltd., a domestic competitor, decided to settle its own dispute with Astellas over the same drug for $90 million.

Also Read: Lupin settles Mirabegron patent dispute with Astellas, agrees to $90 million payout

At the time, analysts have said that this development could delay the entry of other generic competitors into the US market, potentially giving Zydus and Lupin a period of limited competition.

Also Read: Zydus Life shares gain 5% as Q3 results beat estimates; Revenue, EBITDA up around 30% eachEarlier, following the announcement, Zydus shares rose by up to 1.3%.

This settlement agreement concludes all litigations between Astellas, enabling Zydus to continue marketing its generic Mirabegron in the US, the company said in its statement.