Medicis and IMPAX settle over Solodyn, set up R&D accord

US drug firms Medicis and IMPAX Laboratories have agreed to terminate all legal disputes between them relating to Solodyn (minocycline) extended-release tablets, with the latter confirming that Medicis' patents covering the drug are valid and enforceable. IMPAX filed for US approval of a generic version of Solodyn, an acne treatment, in January, sparking the patent dispute. The news saw Medicis' stock leap 21.5% to $13.51 on December 2.

Under the terms of the accord, IMPAX gains a license to market its generic minocycline no later than November 2011, and on launch of the product will pay Medicis a royalty based on sales.

Additionally, the companies have entered a joint development agreement to collaborate on five strategic dermatology product opportunities, whereby Medicis will pay IMPAX $40.0 million at signing plus further milestones totaling up to $23.0 million on successful completion of certain clinical and regulatory achievements. It will also pay sales-based royalties on an advanced form of Solodyn, if and when it is cleared for marketing and commercialized. Gross profits will be shared equally.