The drug is indicated for the treatment of alopecia areata — a condition in which the immune system attacks hair follicles, leading to hair loss on the scalp as well as other parts of the body.

The pharmaceutical company announced LEQSELVI after entering into a settlement and license agreement with Incyte Corporation.

Incyte had earlier accused Sun Pharma of patent infringement.

Under the terms of agreement, the parties will seek dismissal of the pending LEQSELVI litigation in the United States District Court for the District of New Jersey and Sun and Incyte will mutually release each other of all claims that were raised or could have been raised in that litigation.

As a part of agreement, Incyte has granted to Sun a limited, non-exclusive license to patents related to oral deuruxolitinib for certain agreed-upon non-hematology-oncology indications including alopecia areata, in the U.S.

Sun will pay to Incyte an upfront amount, plus ongoing royalty payments until the expiry of the patents, in exchange for the settlement and license.

The scrip had advanced 2.71% to end at Rs 1727.70 on the BSE today.