Intercept Settles Ocaliva Litigation With Reddy's Lab

Intercept Pharmaceuticals Inc ICPT and its subsidiary Intercept Pharma Europe Limited settled patent litigation with Dr. Reddy’s Laboratories Ltd RDY.
The litigation concerns the submission by Dr. Reddy’s of an Abbreviated New Drug Application seeking approval to market a generic version of Ocaliva (obeticholic acid) 5 mg and 10 mg tablets before the expiration of the Company’s U.S. patents.
Related: Intercept Shares Jump After Reissuing Annual Guidance.
Under the terms of the agreement, Intercept granted Dr. Reddy’s a non-exclusive, non-sublicensable, non-transferable, royalty-free license to commercialize its generic version of Ocaliva in the U.S. commencing on October 26, 2035, or earlier under certain circumstances.
Similar patent litigation previously disclosed by Intercept against five other generic filers seeking approval to market generic Ocaliva remains pending.
Price Action: ICPT shares traded 0.94% lower at $17.90 on the last check Wednesday.