May 29 (Reuters) - Endo Health Solutions Inc settled two patent lawsuits with Watson Pharmaceuticals Inc , allowing Watson to launch a generic version of Endo’s pain-relieving patch, pending approval from U.S. health regulators.
Watson could launch a generic version of Lidoderm on Sept. 15, 2013, paying Endo a fourth of the gross profit as royalty, the companies said.
Watson will also receive branded Lidoderm valued at about $96 million during the first eight months of 2013 for distribution.
If the U.S. Food and Drug Administration does not approve Watson’s generic version before Jan. 1, 2014, the company will receive an additional $80 million worth of Lidoderm for the year.
For the year ended March 31, Lidoderm had total U.S. sales of about $1.2 billion, Watson cited IMS Health data.
Shares of Endo Pharmaceuticals closed at $33.57 on the Nasdaq on Monday while Watson shares closed at $72.67 on the New York Stock Exchange.