Abbvie Inc said on Thursday it settled all patent disputes with Novartis AG, granting it a non-exclusive license to manufacture and sell a copycat version of blockbuster drug, Humira.
Abbvie, however, did not disclose details regarding the royalties it will receive from Novartis generics unit, Sandoz, as part of the agreement. Shares of Abbvie rose 2.39 per cent to $92.87 in after-market trading.
The license period will begin on Sept. 30, 2023, in the United States and on Oct. 16 in most countries in the European Union, Abbvie said in a statement.
Sandoz received marketing approval for its Humira biosimilar from the European Commission in July and had submitted its application to the U.S. health regulator early this year.
Last year, Abbvie reached a settlement with Amgen Inc, delaying Amgen’s cheaper biosimilar version of Humira until Jan. 31, 2023.
Humira is the world’s best-selling prescription medicine and has long buoyed AbbVie’s business, raking in $5.19 billion in second-quarter sales.
But as cheaper biosimilar versions come closer to entering the market, the company has been trying to grow sales from its other medicines, including cancer treatment Imbruvica.