- Alexion Pharmaceuticals, a unit of AstraZeneca plc (NASDAQ: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.
