Sun Pharmaceutical Industries Limited, a global leader in specialty generics, has entered into a settlement and license agreement with Incyte Corporation to resolve ongoing litigation in the United States concerning Leqselvi (deuruxolitinib). The development follows Sun Pharma’s earlier disclosure dated April 10, 2025.

As part of the agreement, both parties will jointly move to dismiss the litigation pending in the United States District Court for the District of New Jersey. They have also agreed to mutually release all current and potential claims related to the case.

The agreement grants Sun Pharma a limited, non-exclusive license to U.S. Patent No. 9,662,335 and associated patents for oral deuruxolitinib in the United States, specifically for certain non-haematology-oncology indications, including alopecia areata. This licensing arrangement does not extend to oncology uses.

In consideration for the license and settlement, Sun Pharma will make an upfront payment to Incyte and will provide ongoing royalty payments until the expiry of the licensed patents. The detailed financial terms and additional conditions of the agreement remain confidential.

This agreement strengthens Sun Pharma’s position in the U.S. specialty market, particularly in dermatology and autoimmune segments. With a significant global footprint, Sun Pharma remains the largest pharmaceutical company in India and a prominent player in the U.S. generics space and across emerging markets.