Monday, February 23, 2009

Penwest settles suit against Actavis over pain drug Opana

By Mass High Tech staff

Danbury, Conn.-based drug maker Penwest Pharmaceuticals Co. and its partner Endo Pharmaceuticals Holdings Inc. of Pennsylvania have settled a patent suit with Actavis South Atlantic LLC of Florida over the production and sale of generic versions of the pain-killer Opana.

According to officials, Penwest (Nasdaq: PPCO) and Endo (Nasdaq: ENDP) have agreed to dismiss their suit, and Actavis has agreed to dismiss its counterclaims. Penwest and Endo have also agreed to grant Actavis a license to sell a generic version of Opana on or after July 15, 2011, and a covenant not to sue over the patents in question.

Penwest and Endo settled their own disputes over Opana in January of 2007, reaching an agreement during mediation to amend an existing contract, making royalties to Penwest based on net U.S. sales rather than operating profit and altering certain other provisions.

Endo Pharmaceuticals launched Opana in July 2006, immediately following the drug’s approval from the U.S. Food and Drug Administration in June. The drug uses Penwest’s extended-release delivery technology.

For fiscal 2007, Penwest reported a loss of $34.5 million on revenue of $3.3 million.