Divi's Laboratories in focus after Novartis-MSN settle patent on heart failure treatment drug

Shares of Divi's Laboratories Ltd. gained on Wednesday, June 18, following reports of Novartis and MSN settling the 659 patent with regards to heart failure treatment drug Entresto.

Divi's Laboratories is expected to be a key supplier of active pharmaceutical ingredients (APIs for Entresto to Novartis).

The patent battle

As per reports, the legal battle between Novartis and MSN is expected to move to the next patent, which expires in November 2026 and the related exclusivity expires in May 2027.

Entresto is Novartis' blockbuster drug for heart failure treatment and it generates around $6 billion in sales for the company.

The drug has been facing generic competition from MSN. Novartis has been in legal battles with MSN to block the launch of the generic version. Its main patent on Entresto is set to expire in July 2025.

Impact on Divi's Labs

The terms of the settlement are not yet know.

Divi's Laboratories is estimated to have made ₹1,200 crore from Entresto API in FY25.

In case MSN launches the generic version of the drug in July 2025, Divi's Laboratories' estimated earnings from Entresto API could be ₹700 crore in FY26.

And in case MSN launches is delayed, Divi's can make around ₹1,000 crore to ₹1,200 crore in FY26.

Shares of Divi's Laboratories gained 1.7% to hit an intraday high of ₹6,649 apiece on Wednesday, June 18. The stock was up 0.63% at ₹6,479.5 apiece at 11.30 am. It has gained 8.3% so far this year.

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