 Shire is the UK's third largest drugs firm |
Shares in UK drugs firm Shire Pharmaceuticals have surged 6% after it said it had settled a legal dispute with a rival US company. Shire has now agreed to allow Impax to start selling a generic form of its Adderall XR hyperactivy drug no later than 1 January, 2010.
In return Shire, the UK's third largest drugsmaker, will gain royalties from Impax on each sale.
Shire is now aiming to reach a similar Adderall deal with fellow US firm Barr.
Core product
Analysts said the agreement with Impax was very favourable and will give Shire more time to move its focus onto newer drugs.
Yet, they cautioned that it was unlikely to secure as good a deal with Barr.
Adderall XR generated �346m ($607m) of sales in 2004, more than half of all Shire's business.
Matthew Emmens, Shire's chief executive, said he was pleased with settlement.
"The settlement terms are consistent with our beliefs that Shire's patents are valid and enforceable," he added.
Shire, which is headquartered in Basingstoke, Hampshire, is a member of the FTSE 100 index in London and is also listed on Nasdaq market in the US.
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The settlement terms are consistent with our beliefs that Shire's patents are valid and enforceable
