Valeant pays $13m in royalty settlement

Canada-based Valeant has agreed to pay $13 million to biotechnology company PDL BioPharma to settle a dispute over royalties.

PDL BioPharma acquires and manages a portfolio of companies, products, royalty agreements and debt facilities in the biotech, pharmaceutical and medical device industries.

On Monday, October 30, PDL BioPharma announced that it, along with pharmaceutical company Depomed, had settled the clash concerning the alleged underpayment of royalties by Valeant.

“Under the terms of the settlement agreement, the parties agree that the settlement is not an admission by any party thereto of any fact alleged in the litigation, and reflects a reasonable compromise in the best interest of the parties,” said the press release.

In 2013, PDL Biopharma acquired the rights to receive royalties and payments on sales of Type 2 diabetes products licensed by Depomed, in exchange for a $240.5 million payment.

In September, Depomed sued pharmaceutical business Valeant at the US District Court for the District of New Jersey, alleging a failure to pay Depomed for sales of diabetes drug Glumetza (metformin hydrochloride).

According to the claim, Valeant owed more than $20 million in unpaid royalties.

On the same day, PDL BioPharma responded to Neos Therapeutics’ rejection of its acquisition proposal.

PDL BioPharma had attempted to buy drug maker Neos Therapeutics for the fourth time, this time offering $10.25 per share, which was 40% higher than the closing price of Neos Therapeutics’ shares on October 25.

“While we are not surprised by the response, we are disappointed that Neos’ board of directors has rejected a proposal to acquire the company at a premium of more than 40% and refuses to engage in a constructive dialogue with us on behalf of its shareholders,” said the company.

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