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ARTICLE | Company News

Anacor jumps on damages award in contract dispute

October 19, 2013 12:29 AM UTC

Anacor Pharmaceuticals Inc. (NASDAQ:ANAC) gained $3.06 (28%) to $13.83 on Friday after announcing that an arbitrator awarded the company $100 million in damages as part of a contract dispute with Valeant Pharmaceuticals International Inc. (TSX:VRX; NYSE:VRX). The dispute covers a 2004 deal between Anacor and Dow Pharmaceutical Sciences Inc., under which Dow was providing services to help Anacor develop its topical antifungal agent tavaborole. Valeant -- which is developing efinaconazole, a competitor to tavaborole -- acquired Dow Pharmaceutical in 2008. Anacor was seeking damages of at least $215 million plus injunctive relief. The company said it expects a court to confirm the damages award before year end. At June 30, Anacor had $45.8 million in cash. ...