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- AstraZeneca (NASDAQ:AZN) will pay $775M to Roche's (OTCQX:RHHBY) (OTCQX:RHHBF) unit Chugai Pharmaceutical (OTCPK:CHGCF) to resolve all patent disputes related to rare disease drug Ultomiris.
- AstraZeneca had inherited the rare disease drug Ultomiris after acquiring Alexion Pharmaceuticals.
- Under the settlement agreement between Alexion and Chugai (OTCPK:CHGCY), the two have taken steps to withdraw patent infringement proceedings filed with U.S. District Court for the District of Delaware and Tokyo District Court.
- The U.S. lawsuit claimed that that Alexion unlawfully used Chugai's patented drug-delivery technology to reduce the dosing frequency for Ultomiris.
- “With this settlement, we will continue to advance our Ultomiris development programmes in new indications and focus on our mission to transform the lives of people affected by rare diseases," said Alexion CEO Marc Dunoyer.
- Alexion will make a single payment of $775M in Q2 2022, for which a charge will be recognized through the non-core P&L in Q1.
- AstraZeneca noted that no further amounts are payable by either party and the settlement does not impact its financial guidance for 2022.
- AZN -1.08% pre-market to $61.29