Citi says $90-mn Lupin-Astellas Pharma settlement may delay rival generic launches

Citi says $90-mn Lupin-Astellas Pharma settlement may delay rival generic launches

Citi Research said Lupin's $90-million patent settlement with Astellas Pharma may prevent other generic drugmakers from launching generic Mirabegron for an extended period, potentially giving Lupin and Zydus Lifesciences about 12–18 months of limited competition.

The settlement allows Lupin to continue selling its generic version of Mirabegron, a bladder disorder drug, eliminating legal risks associated with prolonged litigation,s said the global brokerage.

Citi maintained "buy" rating on Lupin with price target of Rs 2,260.

At 12:05 pm on February 10, Lupin shares were trading 1% higher at Rs 2,218.2. So far in 2026, the Lupin stock rose 5%.

Lupin said on Tuesday it agreed to a $90-million settlement with Japan's Astellas Pharma in a patent dispute over the bladder disorder drug Mirabegron, a move that allows it to continue selling the product in the United States.

Under the agreement, Lupin and its US unit will pay Astellas a $75 million upfront payment and per-unit licensing fees on Mirabegron sales through September 2027, the company said in an exchange filing.

In a separate statement, the Japanese drugmaker said the settlement concludes its litigation with Lupin and added that it is reviewing the potential financial impact for the fiscal year ending March 31, 2026.

Lupin had previously disclosed the patent dispute with Astellas last April over its generic version of Myrbetriq, Astellas' overactive bladder drug, after a U.S. court ruling raised the risk that generic versions could be withdrawn from the market.