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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.

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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

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