India's Zydus Life agrees $120 million settlement with Astellas over bladder drug

Feb 12 (Reuters) - India's Zydus Lifesciences ZYDU.NS and its U.S. unit will pay $120 million to Astellas Pharma 4503.T as part of a deal to settle a patent dispute over the Japanese drugmaker's bladder disorder drug Mirabegron, the Indian firm said on Thursday.

Zydus and its unit will also pay a pre-paid per‑unit licensing fee on sales of its generic Mirabegron in the U.S. from the date of the agreement until September 2027, the company said.

The deal will enable the company to continue marketing its generic Mirabegron in the United States, Zydus said, adding that other terms and conditions of the agreement are confidential.

Shares of Zydus climbed as much as 1.3% shortly after the announcement.

The announcement comes days after local peer Lupin LUPN.NS decided to settle its dispute with Astellas over the same drug for $90 million.

At that time, analysts at brokerage Citi said the development could delay the entry of other generic rivals in the U.S. market, potentially providing Zydus and Lupin with a period of limited competition.