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.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)

prescription_pills_drugs.ce.03.jpg
The companies announced a settlement of the 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.

The companies said Impax has agreed that Medicis' patents relating to Solodyn are valid and enforceable. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
15 top executives with $1 salaries Some CEOs and founders agree to salaries of just $1 a year. But once goodies like bonuses and stock options are added in, some of those executives end up taking home many millions of dollars a year. More
Mercedes SL65 AMG: 621 horses of topless power Turn heads as you blow by traffic in this roadster convertible from Mercedes. More
Where the middle class is most unequal CNNMoney looks at the five states with the biggest differences in middle class incomes. More

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.