Bristol-Myers Squibb (NYSE: BMY) grants Dr. Reddy Laboratories (NYSE: RDY) a volume-limited license to produce a generic version of its blockbuster multiple myeloma drug, Revlimid, starting in 2022.
Earlier, Bristol-Myers filed a patent infringement against Dr. Reddy in an attempt to prevent the healthcare company from launching its generic version of Revlimid. In the second quarter, Revlimid generated $ 2.9 billion in revenue for Bristol-Myers.
The newly signed agreement gives Dr. Reddy’s right to produce a limited amount of Revlimid starting on an undiscovered date after March 2022, when an agreement with another generic drug manufacturer – Natco – begins. Restrictions that limit Dr. Reddy’s production volume disappears January 31, 2026.
The agreement enables Bristol-Myers to control how quickly Revlimid’s revenue declines after the patent expires, while eliminating costs and uncertainty associated with Bristol-Myers’ disputes. Bristol-Myers acquired Revlimid when it bought Celgene in 2019 for about $ 74 billion.
There are over 32,000 patients diagnosed with multiple myeloma annually in the United States, making it the second most common blood cancer in the country.