Zydus Lifesciences Shares Rise After Patent Settlement with Astellas

Zydus Lifesciences (ZYDU.NS) announced a major legal resolution, settling its U.S. patent litigation with Astellas Pharma Inc. over the bladder drug Mirabegron (Myrbetriq).

Key Highlights:

• Settlement Terms: Zydus and its U.S. unit will pay $120 million upfront to Astellas.
• Licensing Agreement: A prepaid per-unit licensing fee will apply on sales of generic Mirabegron in the U.S. until September 2027.
• Market Impact: The settlement removes litigation risks and ensures uninterrupted marketing of Zydus’ generic version in the U.S. market.
• Investor Reaction: Shares of Zydus Lifesciences rose 1%, reflecting investor confidence in the company’s ability to sustain U.S. operations.
• Industry Context: The deal follows similar settlements by other Indian pharma firms, highlighting the growing importance of negotiated resolutions in global drug markets.

This settlement strengthens Zydus’ U.S. portfolio, providing revenue visibility while reducing legal uncertainties. Analysts believe the agreement could support steady growth in the company’s international generics business.

Sources: Reuters, Economic Times, Hindu BusinessLine