Impax reaches agreement with Endo and Penwest to settle pending litigation for OPANA ER

Impax Laboratories, Inc. (Nasdaq: IPXL) today announced that it has reached agreement with Endo Pharmaceuticals (Nasdaq: ENDP) and Penwest Pharmaceuticals (Nasdaq PPCO) to settle pending U.S. litigation with regard to 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 or earlier under certain circumstances.

“We are pleased to resolve all patent uncertainties and look forward to working with Endo on the development of a next generation Parkinson's Disease product. We welcome the opportunity to collaborate with a highly respected company on a brand product.”

Separately, Endo and Impax have entered into a Development and Co-Promotion Agreement under which Endo will pay Impax certain milestones up to $40 million related to the development of an Impax branded pipeline product and obtain right to co-promote the product outside of the field of neurology in the US. Further terms of the settlement were not disclosed.

Larry Hsu, Ph.D., President and Chief Executive Officer of IMPAX Laboratories, said, "We are pleased to resolve all patent uncertainties and look forward to working with Endo on the development of a next generation Parkinson's Disease product. We welcome the opportunity to collaborate with a highly respected company on a brand product."