Endo, Penwest announce settlement of OPANA ER litigation with Impax

Endo Pharmaceuticals (Nasdaq: ENDP) and Penwest Pharmaceuticals (Nasdaq: PPCO) announced today that the companies have settled litigation with Impax Laboratories, Inc. (Nasdaq: IPXL) regarding the production and sale of generic formulations of OPANA® ER (oxymorphone hydrochloride) Extended Release tablets.  

Under the terms of the settlement, Endo and Penwest have agreed to grant IMPAX a license to sell a generic of OPANA ER on Jan. 1, 2013. Impax Laboratories will have 180-days of exclusivity for 5, 10, 20, 30 and 40 mg tablets. Further terms of the settlement were not disclosed.  

Endo and Penwest also announced that they have executed 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 percent during the period from April 1, 2010 through Dec. 31, 2012, subject to adjustment in the fourth quarter of 2012, and 20 percent during calendar 2013, subject to adjustment in the fourth quarter of 2013.