Sun Pharma, Incyte Settle Leqselvi Litigation; Sign Licensing Deal

Sun Pharmaceutical Industries Ltd. on Monday said it has entered into a settlement and license agreement with Incyte Corp. to resolve ongoing litigation in the US over Leqselvi (deuruxolitinib), a treatment for adults with severe hair loss.

As part of the deal, both parties will dismiss the pending case in the US District Court for the District of New Jersey and mutually release claims raised or that could have been raised during the litigation, Sun Pharma said in an exchange filing.

Under the agreement, Incyte has granted Sun Pharma a limited, non-exclusive license to US patent number 9,662,335 and related patents for oral deuruxolitinib in certain non-haematology-oncology indications, including alopecia areata, in the US.

In return, Sun Pharma will make an upfront payment and ongoing royalty payments to Incyte until the patents expire. Other financial terms remain confidential.

This comes after the US Court of Appeals for the Federal Circuit in April vacated a preliminary injunction, allowing Sun Pharma to proceed with the launch of Leqselvi in the US, despite the ongoing litigation at the time.