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Jazz Pharmaceuticals jumps as it agrees patent settlement with Hikma on narcolepsy treatment

Jazz will grant Hikma and its wholly-owned subsidiary West-Ward Pharmaceuticals Corp the right to sell an authorised generic version of Xyrem in the US from the beginning of January 2023

Daytime sleepiness
Sales of Xyrem were reported at around US$D1.11bn in 2016, according to Jazz's annual report

Nasdaq–listed, Dublin-based biopharmaceuticals firm Jazz Pharmaceuticals PLC (NASDAQ:JAZZ) saw its shares jump by over 6% in pre-market trading today after it agreed a settlement with London-listed  Hikma Pharmaceuticals PLC (LON:HIK) which resolves a patent litigation with regards to Jazz's narcolepsy treatment, Xyrem.

Under the settlement, Jazz will grant Hikma and its wholly-owned subsidiary West-Ward Pharmaceuticals Corp the right to sell an authorised generic version of Xyrem in the US from the beginning of January 2023.

Hikma will pay a royalty on net sales of the excessive sleepiness treatment, but will initially retail a "meaningful percentage" of net sales, the UK firm said in a statement.

The FTSE 100-listed group will also pay for the supply of the generic drug, and reimburse Jazz with a portion of the service costs.

Sales of Xyrem were reported at around US$D1.11bn in 2016, according to Jazz's annual report.

The initial term of the agreement is six months, and Hikma will have the option to extend this term for a total of five years.

Jazz has also agreed to grant Hikma a licence to market generic sodium oxybate, the active ingredient in Xyrem at the end of the term.

In pre-market trading in New York, Jazz shares were 6.1% higher at US$149.20, while in London, Hikma shares were 16p lower at 1,916p.

Quick facts: Jazz Pharmaceuticals PLC

Price: 148.53 USD

NASDAQ:JAZZ
Market: NASDAQ
Market Cap: $8.4 billion
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