"In our view, a settlement was always in the cards," Aegis says, regarding Valeant's (VRX -1.3%) $142.5M deal with Anacor (ANAC -2.4%).
Analyst Raghuram Selvarajuis notes that ANAC was looking for more than $200M originally. Still, Selvarajuis calls the deal "attractive" for ANAC.
Aegis maintains a Buy rating on VRX and says FDA approval for Jublia should come in June of next year: Since no efficacy or safety issues were raised by the FDA, VRX believes that these items can be addressed in a timely manner.
Anacor (ANAC +0.6%) settles outstanding litigation with Valeant (VRX -0.4%) for $142.5M, which will be paid to ANAC "no later than November 8."
The deal puts to rest "all existing and future claims as well as the damages awarded in [the] arbitration as well as resolves its dispute with Medicis and all other disputes between ANAC, VRX, and DPS related to ANAC's intellectual property, confidential information and contractual rights." (PR)
Earlier this month, an arbitrator awarded ANAC $100M in damages related to a breach of contract claim brought by ANAC against Dow Pharmaceutical Sciences, which was acquired by VRX.
Anacor Pharmaceuticals (ANAC) soars 23% premarket after an arbitrator awards the company $100M in damages related to a breach of contract claim brought by ANAC against Dow Pharmaceutical Sciences, which was acquired by Valeant (VRX) in 2008. (PR)