Panacea Biotec stock jumps 6% on settlement agreement with Celgene for Abraxane generic

Panacea Biotec share price gained 5.6 percent intraday on Monday after the company settled disputes with Celgene for Abraxane generic.

"Panacea Biotec along with its partner, Apotex Inc. and Apotex Corp (Apotex) have entered into a settlement agreement with US-based Celgene Corporation and its subsidiary Abraxis BioScience LLC, for settlement of disputes regarding patents covering Abraxane drug product and the company's abbreviated new drug application (ANDA) for paclitaxel protein bound particles for injectable suspension, 100mg/vial, a generic version of Abraxane," the company said in its filing.

As part of the settlement agreement, Panacea and Apotex will receive a non-exclusive license under which Panacea Biotec may, through its partner Apotex, begin selling Panacea's generic version of Abraxane in the US and its territories on a mutually agreed-upon date, and also in certain jurisdictions outside of the US on a mutually agreed-upon date.

The other terms of the agreement are confidential, the company said.

Its ANDA for paclitaxel protein bound particles for injectable suspension, 100mg/vial, a generic version of Abraxane has been accepted for filing by the USFDA in November, 2017.

Paclitaxel is used for treatment of breast cancer, non-small lung cancer and adenocarcinoma of pancreas.

At 12:11 hours IST, the stock price was quoting at Rs 279.35, up Rs 7.65, or 2.82 percent on the BSE.