AstraZeneca settles patent row with rival

The rare diseases business of AstraZeneca is to pay $775 million to a Japanese competitor after reaching a patent settlement agreement.

Alexion, which AstraZeneca bought for $39 billion last year in its biggest takeover, has resolved patent disputes with Chugai Pharmaceutical related to Ultomiris, a rare blood disease drug.

The two sides have begun to withdraw patent infringement proceedings filed in Delaware in the United States and Tokyo as part of the agreement.

Alexion said the settlement meant it would continue to advance the development of its drug Ultomiris

ALAMY

Alexion will make the payment in the second quarter of this year, but it will not weaken AstraZeneca’s annual financial guidance. Ultomiris generated sales of $688 million last year.

The companies have been embroiled in disputes since 2016, when Alexion challenged the validity of five of Chugai’s European patents and four in Japan. In 2018 Chugai filed a lawsuit against Alexion alleging that Ultomiris infringed a US patent. It filed a second the following year. Chugai also filed a lawsuit in Tokyo in 2018.