Eli Lilly Settlement Will Result In Cialis Patent Expiring As Early As 2018, Rather Than 2020

Eli Lilly & Co. said on Wednesday that as part of a settlement with generic companies over its Cialis patent, the exclusive patent is now expected to end on September 27, 2018 at the earliest, roughly a year-and-a-half earlier than the patent was going to expire. The settlement won't affect 2017 financial guidance or mid-term expectations through the rest of the decade, the company said. The dispute centered around a patent on the unit dose of the drug. Eli Lilly defended the disputed patent as "valid" but said that "this is a royalty-bearing license agreement that provides us with more certainty regarding our U.S. exclusivity," according to Michael Harrington, the company's senior vice president and general counsel. Cialis treats erectile dysfunction, but the drug -- tadalfil -- is also sold under the name Adcirca for pulmonary arterial hypertension. Adcirca's patent is still expected to expire on November 21, 2017 or, if the Food and Drug Administration grants the company pediatric exclusivity, on May 21, 2018, Eli Lilly said. Eli Lilly shares rose 1.8% to $83.80 in morning trade. Shares have dropped 2.9% over the last three months, compared with a 4.2% rise in the S&P 500 .