AbbVie Inc. (NYSE: ABBV) shares made a handy gain on Thursday after it was announced that the company resolved its Humira patent disputes with Amgen Inc. (NASDAQ: AMGN). What’s important here is that all litigation pending between the parties will be dismissed, and Amgen has acknowledged the validity of AbbVie’s intellectual property related to Humira.
Under the terms of the settlement agreements, AbbVie will grant to Amgen a nonexclusive license to AbbVie’s intellectual property relating to Humira beginning on certain dates in certain countries in which AbbVie has intellectual property.
The license period will begin on January 31, 2023, in the United States, on October 16, 2018, in most countries in the European Union, and on other dates in various countries in which AbbVie has intellectual property.
As part of the deal, Amgen will pay royalties to AbbVie but the precise terms are confidential.
Laura Schumacher, AbbVie’s executive vice president, external affairs, general counsel and corporate secretary, commented:
We are pleased to have reached this settlement with Amgen which respects the breadth and strength of our intellectual property portfolio. As an innovation driven bio-pharmaceutical company, we believe intellectual property is essential to protect the investment in science and advance novel cures for the toughest health challenges. In reaching this agreement, we have achieved the balance between protecting investment in innovation and providing access to biosimilars, which will play an important role in our health care system. We will continue to defend our intellectual property and to reinvest in further advancements in medicine to bring choices to patients in need.
Shares of AbbVie were last seen up over 5% at $89.55, with a consensus analyst price target of $82.47 and a 52-week trading range of $55.06 to $90.95.
Amgen shares were up about 1% at $186.46. The stock has a 52-week range of $133.64 to $191.10 and a consensus price target of $187.25.