AstraZeneca Settles Ultomiris-Related Patent Litigation With Chugai

Alexion Pharmaceuticals, a unit of AstraZeneca plc AZN, has entered into a settlement agreement with Chugai Pharmaceutical Co Ltd, resolving all patent disputes related to Ultomiris (ravulizumab).
Under the settlement agreement, Alexion and Chugai will withdraw patent infringement proceedings filed with the U.S. District Court for the District of Delaware and Tokyo District Court.
Alexion will make a single payment of $775 million in Q2 of 2022, for which a charge will be recognized through the non-core P&L in Q1 of 2022.
No additional amounts are payable by either party. The settlement does not impact AstraZeneca’s financial guidance for 2022.
In November 2018, Chugai filed a lawsuit against Alexion alleging that Ultomiris infringes US patent No. 9,890,377 held by Chugai. Upon issuing US patent No. 10,472,623 in November 2019, Chugai filed a second lawsuit in the same court alleging that Ultomiris also infringes that patent.
The two lawsuits were consolidated in December 2019.
Marc Dunoyer, Chief Executive Officer, Alexion, said: “With this settlement, we will continue to advance our Ultomiris development programs in new indications and focus on our mission to transform the lives of people affected by rare diseases.”
Price Action: AZN shares are down 0.05% at $61.93 during the premarket session on the last check Thursday.