Valeant agrees $142.5 million settlement with Anacor

Anacor Pharmaceuticals (Nasdaq: ANAC) says it has entered into a $142.5 millionsettlement agreement with Canada-based Valeant Pharmaceuticals International (TSX: VRX) related to all outstanding litigation, including its arbitration with Valeant, successor in interest to Dow Pharmaceutical Sciences (DPS) and its ongoing dispute with Medicis Pharmaceutical Corp, which was acquired by Valeant in December 2012.

The dispute related to certain development services provided by DPS in connection with Anacor’s efforts to develop its topical antifungal product candidate for the treatment of onychomycosis. Anacor’s assertions included breach of contract, breach of implied covenant of good faith and fair dealing, misappropriation of trade secrets and unfair competition.

On October 17, 2013, Anacor announced that the arbitrator appointed to resolve its dispute with Valeant related to DPS issued an Interim Final Award in favor of Anacor, awarding Anacor $100 million in damages as well as all costs of the arbitration and reasonable attorney’s fees (The Pharma Letter October 28).