Dr Reddy's Laboratories shares got off to a bright start on Friday, with investors reacting positively to news about the company settling a patent litigation with Vivus Inc. Another positive trigger for the stock this morning is an announcement from the company that it has launched Cefixime for oral suspension, USP in the US market.

The stock jumped to Rs 2204.45, up over 9% from its previous closing price.

On the National Stock Exchange, the Dr Reddy's Laboratories counter has clocked a volume of over 1.5 million shares (valued at over Rs 325 crore) so far in the session, topping the chart in the process. On BSE, more than 80,000 shares have changed hands so far at the DRL counter in the session.

Dr Reddy's Laboratories said that it has launched Cefixime, a therapeutic equivalent generic version of Suprax for Oral Suspension, after getting the nod from USFDA.

The Suprax brand and generic had US sales of about $50.5 million MAT for the twelve months ended June 2017, shows IMS Health.

Meanwhile, according to reports, the patent litigation between Vivus Inc, a Nasdaq-listed company, and Dr Reddy's Laboratories Limited is set to end following the two companies signing a settlement agreement to resolve the issue.

The litigation, pending since 2015, pertains to weight management capsule Qsymia. The litigation arose after Dr Reddy's Laboratories submitted an abbreviated drug application (ANDA) to market generic versions of Qsymia.

Following the settlement agreement, Dr Reddy's Laboratories can start selling a generic version of Qsymia from June 2025, or earlier under certain circumstances. In the event of an early launch, Vivus will receive a royalty on sales of the generic version of the drug.

Qsymia capsules, for phentermine and topiramate extended-release, is used to manage chronic overweight in adults with obesity symptoms.

Vivus and Dr Reddy's Laboratories will now submit the settlement agreement to the US Federal Trade Commission and US Department of Justice for review.

The two reports - the announcement about the launch of a new drug and news about the settlement of the patent litigation, have helped lift sentiment at DRL counter, particularly after a recent report the filing of a class action lawsuit against the company, its CEO and CFO, in the United States District Court for the District of New Jersey, alleging violations of the US federal securities laws.

The lawsuit alleges that Dr Reddy's Laboratories made materially false and misleading statements or omissions in connection with its corporate quality system, particularly in connection with a warning letter from the USFDA. However, Dr Reddy's Laboratories has not yet been served with the lawsuit.