Anacor Vs. Valeant: The Verdict Is In

(RTTNews) - In a breach of contract dispute with Valeant Pharmaceuticals International Inc. (VRX) (VRX.TO), Anacor Pharmaceuticals Inc. (ANAC) has received a favorable arbitration ruling.

The arbitration is related to certain development services provided by Dow Pharmaceutical Sciences, Inc. to Anacor to develop topical antifungal product candidate Tavaborole for the treatment of onychomycosis under a master services agreement dated March 26, 2004. Dow Pharmaceutical Sciences was acquired by Valeant in December 2008.

Tavaborole is now under FDA review, with a decision date set for July 29, 2014.

Anacor had sought injunctive relief and damages of at least $215.0 million from Valeant.

According to the Interim Final Award issued by the arbitrator yesterday, Anacor has been awarded $100 million in damages as well as all costs of the arbitration and reasonable attorney's fees.

Any issues not resolved in the Interim Final Award order can be apprised by the parties within ten days, and responses to any such submission are due within fifteen days of the date of the Interim Final Award. If no submissions are made, the Interim Final Award will become final.

Valeant will likely have 60 to 100 days, but no more than 180 days, from the date of confirmation to appeal the decision to confirm the award.

Anacor believes it has additional claims against Valeant related to separate contractual rights and intellectual property rights and is evaluating options for pursuing those claims as well.

ANAC was trading around $5 when it was profiled on our site last December. The stock, which touched a 52-week high of $12.63 on Oct.4, 2013, has given back some of its gains and closed yesterday's trading at $10.77.

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