Valeant Pharma To Pay Anacor $142.5 Mln To Settle All Outstanding Litigation

(RTTNews) - Biopharmaceutical company Anacor Pharmaceuticals, Inc. (ANAC) said Monday that under a settlement agreement, Canadian drugmaker Valeant Pharmaceuticals International Inc. (VRX, VRX.TO) will pay $142.5 million to Anacor to resolve all outstanding litigation between them.

The settlement agreement includes the previously-disclosed disputes involving Anacor and Valeant's subsidiaries, Dow Pharmaceutical Sciences, Inc. and Medicis Pharmaceutical Corp. Shares of Anacor are gaining almost 5 percent in pre-market trades.

Under the settlement agreement, Valeant will pay $142.5 million to Anacor to settle all existing and future claims related to Anacor's intellectual property, confidential information and contractual rights. The payment includes the previously announced interim final award and legal fees related to Anacor's dispute with Dow. Valeant has agreed to make payment to Anacor by November 8, 2013.

Palo Alto, California-based Anacor noted that the settlement agreement includes its arbitration with Valeant, successor in interest to Dow, and the company's ongoing dispute with Medicis Pharmaceutical that was acquired by Valeant in December 2012.

On October 17, 2013, Anacor said that the arbitrator appointed to resolve its dispute with Valeant related to Dow issued an interim final award in Anacor's favor, awarding the company $100 million in damages as well as all costs of the arbitration and reasonable attorney's fees.

The arbitration is related to certain development services provided by Dow to Anacor to develop topical antifungal product candidate Tavaborole for the treatment of onychomycosis under a master services agreement dated March 26, 2004. Dow was acquired by Valeant in December 2008.

Tavaborole is currently under FDA review, with a decision date set for July 29, 2014. Onychomycosis is a fungal nail infection, and is said to affect about 35 million to 36 million people in the U.S.

Anacor had sought injunctive relief and damages of at least $215 million from Valeant. However, Valeant will now pay Anacor $142.5 million to settle all existing and future claims as well as the damages awarded in that arbitration in addition to settling its dispute with Medicis, and all other disputes between Anacor, Valeant and Dow related to Anacor's intellectual property, confidential information and contractual rights.

In Monday's regular trading session, ANAC is gaining $0.15 or 1.14 percent to $13.01 on a volume of 62,416 shares.

VRX is trading at $112.68, up $0.11 or 0.10 percent on a volume of 12,063 shares.