The shares of Intercept Pharmaceuticals (NASDAQ:ICPT) added ~8% on Wednesday after the biotech announced an agreement with generic drugmaker Amneal Pharmaceuticals (NYSE:AMRX) to settle a patent dispute over the liver disease therapy Ocaliva.
The Jan. 24 agreement aims to resolve a patent lawsuit over Amneal’s (AMRX) bid to introduce a generic version of Intercept’s (ICPT) Ocaliva before the expiry of the company’s Orange Book patents.
Per the terms, Intercept (ICPT) has granted Amneal (AMRX) a “non-exclusive, non-sublicensable, non-transferable, royalty-free license,” allowing it to sell generic Ocaliva in the U.S.
According to the agreement, Amneal’s (AMRX) generic Ocaliva could launch in the U.S. on Apr. 26, 2034, or earlier under some conditions. The companies have yet to receive regulatory nod and court approval for the settlement.
Amneal (AMRX) is one of several drugmakers seeking to introduce generic Ocaliva with Abbreviated New Drug Applications (ANDA). Intercept’s (ICPT) legal disputes with other ANDA filers are ongoing.
Read: Seeking Alpha contributor Bret Jensen argued in October that Amneal (AMRX) “is dogged by high debt, as well as some lawsuits” as it pivots away from oral pills.