Endo Pharmaceuticals Holdings Inc. (ENDP) said it and Penwest
Pharmaceuticals Co. (PPCO) have agreed to grant two separate
licenses to sell generic Opana extended-release pain-relief
tablets.
Shares of Penwest, whose fortunes are significantly tied to
Opana, jumped 21% to $3.35 as the deals eliminate uncertainty that
has hung over the company for years. The stock is up 53% the past
year, but traded above $20 in 2006.
Impax gained 0.9% to $19.96 while Endo added 9 cents to
$20.31.
Opana ER has been a source of continuing patent litigation for
the developers. Penwest in May said it settled a separate dispute
with Barr Laboratories related to the drug. Sales for the Opana
franchise generated $66 million for Endo in its latest quarter, a
25% increase from the year-earlier period, it said in April.
On Tuesday, Endo said it and Penwest granted Novartis AG's
(NOVN.VX) Sandoz Inc. unit a license to sell a generic version of
Opana in September 2012. Impax Laboratories Inc. (IPXL) will get a
similar license, effective at the start of 2013. Impax will have
180 days of exclusivity for tablets with several dosages of the
drug, Endo said.
Opana ER is used to relieve moderate to severe pain in patients
requiring around-the-clock treatment for an extended period of
time, according to a website for the drug.
-By Matt Jarzemsky; Dow Jones Newswires; 212-416-2240,
matthew.jarzemsky@dowjones.com