(Reuters) – Abbvie Inc said on Thursday it settled all patent disputes with Novartis AG, granting it a non-exclusive license to manufacture and sell a copycat version of blockbuster drug, Humira.
A screen displays the share price for pharmaceutical maker AbbVie on the floor of the New York Stock Exchange July 18, 2014. REUTERS/Brendan McDermid
Abbvie, however, did not disclose details regarding the royalties it will receive from Novartis generics unit, Sandoz, as part of the agreement.
Shares of Abbvie rose 2.39 percent to $92.87 in after-market trading.
The license period will begin on Sept. 30, 2023 in the United States and on Oct. 16 in most countries in the European Union, Abbvie said in a statement.
Sandoz received marketing approval for its Humira biosimilar from the European Commission in July and had submitted its application to the U.S. health regulator early this year.
Last year, Abbvie reached a settlement with Amgen Inc, delaying Amgen’s cheaper biosimilar version of Humira until Jan. 31, 2023.
Humira is the world’s best-selling prescription medicine and has long buoyed AbbVie’s business, raking in $5.19 billion in second-quarter sales.
But as cheaper biosimilar versions come closer to entering the market, the company has been trying to grow sales from its other medicines, including cancer treatment Imbruvica.
Reporting by Manogna Maddipatla and Saumya Sibi Joseph in Bengaluru; Editing by Arun Koyyur