Medicis shares surge after settlement
The drugmaker says it cuts a deal to end a patent dispute over a generic version of the acne drug Solodyn.
NEW YORK (CNNMoney.com) -- Shares of Medicis Pharmaceutical Corp. rose more than 25% in midday trading Tuesday, following the settlement of a patent dispute with a competitor.
Late Monday, Medicis (MRX) announced it cut a deal with Impax Laboratories Inc., ending a patent dispute over a generic version of the acne drug Solodyn.
At 12:30 p.m. ET, Medicis shares were up $2.81 to $13.93.
According to the announcement, Impax retains the right to market a generic version no later than November 2011. After launching its drug, the conpanies said Impax will pay Medicis a royalty based on sales.
The companies will also collaborate on research and development of five "strategic dermatology product opportunities," including a more advanced version of Solodyn, according to a statement issued by the companies.