Sun Pharma Settles Patent Dispute with Incyte, Secures License for Leqselvi Launch

Image Source : The Print

Sun Pharmaceutical Industries has reached a settlement with Incyte Corporation over the disputed launch of Leqselvi, its alopecia areata treatment, in the United States. The agreement includes an upfront payment and ongoing royalties in exchange for a nonexclusive license to U.S. Patent No. 9,662,335, clearing a major legal hurdle for Sun Pharma’s entry into the competitive JAK inhibitor market.

Key highlights:

Sun Pharma will pay Incyte an undisclosed upfront amount and commit to royalty payments tied to future sales of Leqselvi.
Incyte has granted Sun a nonexclusive license to its patent, allowing Sun to commercialize Leqselvi in the U.S. without further litigation.
The settlement follows a New Jersey court injunction that had blocked Sun’s planned launch, citing patent infringement concerns.

Background and implications:

Leqselvi, approved by the FDA in July 2024, was acquired through Sun Pharma’s $576 million purchase of Concert Pharmaceuticals.
Analysts had projected Leqselvi to generate $90 million in FY26 and $125 million in FY27, but the legal delay had cast doubt on those estimates.
The settlement is expected to accelerate the drug’s market entry, potentially restoring investor confidence and revenue forecasts.

Market reaction:

Sun Pharma’s stock, which had dipped following the injunction, may see renewed momentum as the company navigates past regulatory and legal headwinds.

This resolution marks a strategic win for Sun Pharma, enabling it to compete in the growing alopecia treatment space while avoiding prolonged litigation.

Sources: Business Standard, Fierce Pharma, Economic Times.