Dr. Reddy's Settles Revlimid Patent Suit With Bristol Myers
Shares of Dr. Reddy’s Laboratories Ltd. RDY grew 6.3%, after it announced a settlement of its litigation with Celgene, a wholly-owned subsidiary of Bristol Myers Squibb BMY, relating to patents for Revlimid (lenalidomide) capsules. Revlimid is a prescription medicine,used to treat adults with multiple myeloma (MM) in combination with dexamethasone.Shares of the company have surged 63.9% year to date against the industry’s decline of 5.6%.
Per the settlement, Celgene has agreed to provide Dr. Reddy’s with a license to manufacture and sell a limited amount of Revlimid beginning an undisclosed date following March 2022,. The specific volume-limited license date and percentages agreed-upon with Dr. Reddy’s were not disclosed and are confidential.
In addition, Celgene has agreed to provide Dr. Reddy’s with a license to Celgene’s patents required to manufacture and sell an unlimited quantity of generic Revlimid in the United States beginning on Jan 31, 2026.
Further, Dr. Reddy's Laboratories launched over-the-counter (OTC) Olopatadine Hydrochloride Ophthalmic Solution USP in the U.S. market, as approved by the FDA. Olopatadine Hydrochloride Ophthalmic Solution is indicated for the temporary relief of itchy eyes due to pollen, ragweed, grass, animal hair and dander. It is also indicated for the temporary relief of red eyes.
Additionally, Dr. Reddy’s signed a deal with the Russian Direct Investment Fund (RDIF), Russia's sovereign wealth fund, to cooperate on clinical trials and distribution of the Sputnik V vaccine in India. The Sputnik V vaccine, which is based on well studied human adenoviral vector platform with proven safety, is undergoing clinical trials for the coronavirus pandemic. Following regulatory approval in India, RDIF will supply 100 million doses of the vaccine to Dr. Reddy's.
Dr. Reddys Laboratories Ltd Price
Zacks Rank & Other Stocks to Consider
Dr. Reddy’s currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the healthcare sector include Emergent Biosolutions Inc. EBS and Bio Techne Corp TECH both carrying a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Emergent’s earnings estimates have increased from $4.23 to $6.58 for 2020 and from $5.55 to $7.62 for 2021 over the past 60 days. Shares of the company have increased 88.3% year to date.
Bio Techne’s earnings estimates have increased from $5.33 to $5.48 for 2020 and from $6.41 to $6.50 for 2021 over the past 60 days. Shares of the company have increased 11.7% year to date.
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