Par Pharma settles patent dispute with Reliant

Generic drug developer Par Pharmaceutical Cos. said Tuesday it settled a patent dispute with Reliant Pharmaceuticals Inc. over the abnormal heart rhythm treatment Rythmol SR.Par had challenged Reliant's patent. Under the settlement, Par can start selling a generic version of the drug on Jan. 1, 2011, or earlier, depending on the circumstances. Financial details were not disclosed.Reliant currently operates as a unit of British drug developer GlaxoSmithKline ( GSK - news - people ) PLC. Glaxo bought Reliant for $1.65 billion in 2007.Rythmol SR had sales of about $119 million for the 12 months ended September 2008, Par said, citing IMS Health ( RX - news - people ) data.Shares of Par Pharmaceutical rose 49 cents, or 4.5 percent, to $11.47 in afternoon trading. The stock has traded between $7.80 and $19.10 over the last 52 weeks.

Par Pharmaceutical Enters Into Agreement With Reliant Pharmaceuticals to Settle Patent Litigation Over Rythmol(R) SR

WOODCLIFF LAKE,-Par Pharmaceutical Companies, Inc. (NYSE: PRX) ("Par") today announced it has entered into a settlement agreement with Reliant Pharmaceuticals, Inc. ("Reliant") that resolves patent litigation related to Reliant's Rythmol(R) SR product, thereby eliminating the inherent uncertainty and costs of litigation.

Under the terms of the settlement, Par will have the right to introduce a generic version of Rythmol(R) SR on January 1, 2011, or earlier under certain circumstances. Propafenone extended release capsules are indicated to prolong the time to recurrence of symptomatic atrial fibrillation in patients without structural heart disease. The use of Propafenone ER capsules in patients with permanent atrial fibrillation or in patients exclusively with atrial flutter or PSVT has not been evaluated. Propafenone ER capsules should not be used to control ventricular rate during atrial fibrillation. The effect of Propafenone ER capsules on mortality has not been determined. Rythmol(R) SR had combined U.S. sales of approximately $119 million for the twelve months ended September 2008, according to IMS Health.

In accordance with the settlement agreement, all ongoing patent litigation between Reliant Pharmaceuticals and Par Pharmaceutical, Inc., in the U.S. District Court for the District of Delaware, has been dismissed.