Dr Reddys and several other pharma companies were named as a defendant in a complaint filed in a US court under anti-trust laws. The complaint, which pertains to generic cancer drug Revlimid, was filed by Mayo Clinic and Lifepoint Corporate Services in the US district court of the northern district of California.
It was alleged that the patent settlement agreement on the $8 billion drug restrained competition and maintained a shared monopoly in the sale of the drug in the US.
Revlimid is a cancer drug by pharma company Celgene, which is now a subsidiary of Bristol Myers Sqiubb (BMS). It is used to treat several blood cancers patients. The American pharma company, BMS, settled with multiple generic companies to sell volume-limited amounts of generic Revlimid in the US starting March 2022.
As per the settlement, Natco Pharma, along with its partner Teva, was allowed to sell limited amounts of the generic version of the drug starting March 2022. While other companies entered in a staggered manner, some were still scheduled to launch as per their respective settlements. Companies can sell without volume limitations starting January 31, 2026.
Industry watchers said that other companies, besides Dr Reddys — such as Natco, Cipla and Zydus and Sun Pharma — who have settled with BMS, are likely to be a part of the defendants list.
Elara Capital’s Bino Pathiparampal said that Dr Reddys has about 50% of its current profit from the drug sales in the US, while it contributes 15-20% of overall profits for Sun, Cipla and Zydus Life.
The litigations, the brokerage believes, drags on for years and generally see settlements which are often 20-40% of profits. This litigation is not expected to impact sales of the drug immediately for any of the companies, said analysts.
First Published: Oct 10, 2023 12:30 PM IST
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