Overview
India’s Lupin has reached a settlement with Japan’s Astellas Pharma to resolve a patent infringement dispute related to the bladder control drug Mirabegron, allowing Lupin to continue marketing the product in the United States.
Financial terms of the agreement
According to an exchange filing, the total consideration to be paid to Astellas is $90 million. That amount comprises a $75 million prepaid option payment, accompanied by a per-unit licensing fee on Mirabegron sales in the U.S. The filing specifies that the per-unit fee will apply through September 2027 but does not disclose the precise per-unit amount.
Legal status
The settlement terminates the litigation between the two companies that had been publicly disclosed in April 2025. With the agreement in place, the pending legal proceedings tied to the patent dispute have been concluded.
Operational and financial implications for Lupin
Mirabegron represents a significant product for Lupin in the U.S. market, accounting for the bulk of the company’s revenues there. The settlement secures Lupin’s ability to continue selling the drug stateside but introduces an immediate cash outflow and recurring fees that are expected to reduce near-term profitability. At the same time, by resolving the patent dispute and defining the licensing arrangement through 2027, the deal creates a more certain outlook for future earnings tied to Mirabegron sales.
Market sectors affected
The agreement primarily touches the pharmaceutical and healthcare sectors, with direct implications for companies involved in branded and generic drugs as well as investors tracking litigation-related risks and revenue continuity in U.S. markets.
Conclusion
The negotiated settlement between Lupin and Astellas ends the dispute over Mirabegron and permits Lupin to maintain its U.S. business for the drug under a defined payment arrangement. While the payments and ongoing license fees will exert pressure on short-term profitability, the removal of legal uncertainty establishes a clearer trajectory for revenue generation from Mirabegron through the period covered by the agreement.
Summary section
Lupin will pay Astellas $90 million to settle a patent infringement claim over Mirabegron, including a $75 million prepaid option and undisclosed per-unit royalties through September 2027; the settlement ends litigation disclosed in April 2025 and secures Lupin’s continued U.S. sales of the drug while likely reducing near-term profits.