Shares of Dr Reddy’s Laboratories jumped over 10% on Friday after the company said it has settled a litigation with a unit of Bristol Myers Squibb related to patents for Revlimid (lenalidomide) capsules, used in the treatment of cancer.
Continuing its rally for the fourth consecutive day, the stock gained 10.36% to close at ₹ 5,326.70 on the BSE. During the day, it rose by 13.88% to ₹ 5,497 — its record high level.
On the NSE, it zoomed 9.92% to close at ₹ 5,306.
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In traded volume terms, 6.37 lakh shares were traded at the BSE and over 2 crore units at the NSE during the day.
The Hyderabad-based company has settled litigation with Celgene, a wholly-owned subsidiary of Bristol Myers Squibb, Dr Reddy’s Laboratories said in a statement on Thursday.
In settlement of all outstanding claims in the litigation, Celgene has agreed to provide the company with a license to sell volume-limited amounts of generic lenalidomide capsules in the US, beginning on a confidential date after March 2022, subject to regulatory approval, it added.
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The agreed-upon percentages are confidential, Dr Reddy’s said.
Shares of Dr Reddy’s Laboratories had risen in the last two days as Russia’s sovereign wealth fund RDIF will supply 100 million (10 crore) doses of Sputnik V COVID-19 vaccine to the drug maker upon getting regulatory approval in India.
Meanwhile, the BSE healthcare index also rose 3.50% to close at 20,404.76.