Cadilla in pink of health

Cadilla Healthcare seems to be in the pink of health today morning. The stock is up currently over 2.5% at Rs.743.90, closer to its intra day high at Rs.749.

The stock has zoomed on news which the company announced that it has settled a patent litigation with US-based Warner Chilcott Company LLC., related to Asacol HD (mesalamine) delayed-release tablets. Under this agreement, Warner will grant Cadilla and Zydus a royalty-bearing license to market a generic version of its patented drug Asacol HD beginning on November 15, 2015 or earlier under certain circumstances, following receipt by Zydus of final approval from the U.S. Food and Drug Administration (USFDA) of its Abbreviated New Drug Application (ANDA) for generic version of Asacol HD. And in case Zydus does not receive USFDA approval  by July 1, 2016, Zydus will be permitted to launch an authorized generic version of Asacol HD beginning on July 1, 2016. No financial details of the agreement have been divulged.