Endo Pharma, Penwest Pharma Settle Patent Litigation Over Pain Drug Opana - Update

(RTTNews) - Endo Pharmaceuticals Holdings Inc. (ENDP) and Penwest Pharmaceuticals Co. (PPCO), Tuesday announced that they have have settled patent litigation with Sandoz, Inc. and Impax Laboratories, Inc. (IPXL), granting two separate licenses to sell generic formulations of Opana Extended Release pain drugs. Penwest stock jumped almost 18% on the Nasdaq following the news, while Endo Pharma shares had a marginal gain of 0.94%.

Opana ER, which is jointly developed by Endo and Penwest, is a narcotic pain medicine used to treat moderate-to-severe pain.

Under the terms of the settlement, Endo and Penwest have agreed to grant Sandoz, a unit of Swiss pharmaceutical giant Novartis AG (NVS), a license to sell a generic of Opana ER on September 15, 2012. Further terms of the settlement were not disclosed. Meanwhile, drug developer Impax would get a license to sell generic of Opana ER on January 1, 2013, and will have 180-days of exclusivity for 5, 10, 20, 30 and 40 mg tablets.

Endo and Penwest also announced the execution of an amendment to their existing strategic collaboration agreement under which the royalty rate on net sales of Opana ER would now be capped at 22% during the period from April 1, 2010 through December 31, 2012, subject to adjustment in the fourth quarter of 2012, and 20% during 2013, subject to adjustment in the fourth quarter of 2013.

PPCO is currently trading at $3.24 per share, up $0.46 or 16.55%.

ENDP is currently trading at $20.38, up $0.16 or 0.79%, on the Nasdaq. IPXL is trading at $19.68 per share.