Actavis settles with Valeant to launch generic Ziana and Zyclara in USA

US generics drug major Actavis (NYSE: ACT) has reached settlement agreements with Medicis Pharmaceutical, a subsidiary of Canada’s Valeant Pharmaceuticals International (TSX: VRX), resolving outstanding patent litigation related to Actavis' Abbreviated New Drug Application for clindamycin and tretinoin gel, a generic version of Ziana, as well as Actavis' ANDA for imiquimod cream, a generic version of Zyclara.

Under the terms of the accord related to Actavis' generic version of Ziana, Actavis may launch its generic product in July 2016, or earlier under certain circumstances. Actavis may launch its generic Zyclara product on January 1, 2019, or earlier under certain circumstances. Valeant will receive a share of the economics from the generic products sold under the agreements. Other terms of the deals have not been disclosed.

Ziana had US sales of about $109 million in the 12 months through February, according to Actavis. It costs about $250 for a 30-gram tube. Zyclara had US sales of $72 million in the 12 months through February. It costs about $690 for a pump holding 7.5-grams of the cream, the company noted.