Drug-maker Lupin Ltd has commenced the year with a settlement of all ongoing litigation over insomnia drug Lunesta tablets with Japanese drug-maker Dainippon Sumitomo Pharma Co.

Lupin and its subsidiary Lupin Pharmaceuticals Inc settled litigation, over the generic version of Lunesta or Eszopiclone tablets, with Dainippon's subsidiary Sunovion Pharmaceuticals Inc, a Lupin note said.

Agreement

In August last year, a similar settlement on Lunesta was reached between Glenmark and Sepracor Inc. But Sepracor was rechristened Sunovion after it was bought by Dainippon in a $2.6-billion deal in late 2009.

Following the latest settlement, Lupin will now sell the generic version of Lunesta under a licence on November 30, 2013, about two-and-a-half months prior to the expiry of one of the US patents of the medicine, the note said. The date could get delayed to May 31, 2014, if Sunovion obtains six months additional paediatric exclusivity for the product, it added. Industry estimates Lunesta sales at $787 million for the 12 months ended September 2010.

In the past, several Indian drug-makers have formalised settlements on litigation ? including about four settlements by Glenmark in the last two years, Lupin (that also settled with Wyeth and Forest Labs), Sun Pharma (with Orion), and the erstwhile Ranbaxy, with its string of settlements with Pfizer, Astra Zeneca and Takeda.

Expensive process

Companies often settle since litigation is an expensive process, says an industry representative. Besides, there may also be scope for future outsourcing agreements, between the original drug-maker (Dainippon, in this case) and the generic companies that make similar versions of the drug, he observed.

Lupin shares closed, up over one per cent, at Rs 487 on the BSE, on Monday.

jyothi@theindu.co.in

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