When BMS paid for the acquisition of Celgene in early January, investors who were not optimistic about the deal considered a big risk that Celgene’s blockbuster drug Revlimid faced a patent challenge and sales would shrink sharply.
But a recent US Patent and Trademark Office (PTO) decision has given investors a reassurance. The PTO office believes that Dr. Reddy’s challenge against Revlimid’s three patents is ineffective, which means that Dr. Reddy can’t venture to market Revlimid’s generics by 2023. Leerink analyst Geoffrey Porges believes that this decision will also speed up the process of BMS’s acquisition of Celegene.
BMS and Celgene announced the merger of the two companies before the opening of the JP Morgan Conference. The two companies remain optimistic about the ability to establish a leading position in the field of cancer after mergers. BMS CEO Giovanni Caforio believes that the combined company will be the top 5 company in the field of oncology and inflammatory diseases, even without Revlimid, he will also The pipeline reserve is excited.
Revlimid’s global sales in 2018 were $9.7 billion, accounting for nearly two-thirds of Celgene’s entire company’s revenue. Although the CEOs of both companies are more optimistic, investors are more worried about Revlimid’s patent challenges. The judgment of the PTO will undoubtedly give the investors of the two companies peace of mind.
However, Credit Suisse analyst Vamil Divan concluded that the decision would also lead to a patent litigation settlement between Celgene/BMS and Dr. Reddy. Celgene has reached a patent settlement with Natco Pharmaceuticals, allowing the latter to conditionally market lenaliamide in March 2022.
In fact, the patent litigation settlement between branded drug manufacturers and generic drug companies is also an ideal result that both parties can accept. Humira has encountered patent challenges from numerous companies. AbbVie has reached a patent litigation settlement with seven companies, hoping to ensure that Humira’s patent protection in the United States will continue until 2023.