San Diego-based Cadence Pharmaceuticals Inc. (Nasdaq: CADX) said Wednesday that it settled a patent dispute with Perrigo Co. (Nasdaq: PRGO) on its only marketed drug, the fever and pain treatment Ofirmev.
Under the settlement Perrigo Co. can start selling a generic version of Ofirmev starting Dec. 6, 2020. That's six months before the last patents supporting the drug expire. If Cadence decides to launch an authorized generic version of the drug, Perrigo will have the right of first refusal to negotiate with Cadence about making that product.
Ofirmev is an injectable version of the drug acetaminophen. Perrigo said annual sales of the drug are about $42 million.
Shares of Cadence rose 47 cents, or 12 percent, to $4.40 in late afternoon trading Thursday. Perrigo is based in Allegan, Mich. Its shares were down 9 cents to $103.18.