Shares of Anacor Pharmaceuticals climbed Friday after the company said an arbitrator is awarding the company $100 million in a dispute with Canadian drugmaker Valeant Pharmaceuticals.
The companies said Valeant was ordered to pay $100 million in damages and will also have to pay costs and attorney’s fees. Anacor said it expects the award to be confirmed by the end of the year, and after that Valeant will have up to six months to pay.
Valeant said the decision won’t hinder its efforts to market its antifungal drug Jublia and said it was not ordered to make any royalty payments. It did not say if it plans to dispute the ruling.
Anacor says that Dow Pharmaceutical Services, which is now part of Valeant, breached a contract related to Anacor’s work on Jublia. The drug is a treatment for onychomycosis, a fungal infection of the nail and nail bed. Jublia has not been approved in the U.S. but was approved in Canada earlier this month.
Shares of Anacor rose $3.04, or 28.2 percent, to $13.81 in morning trading. Earlier the stock reached an all-time high of $13.90.
Anacor Pharmaceuticals Inc. said it believes it has other claims against Valeant related to other disputes.
Shares of Valeant Pharmaceuticals International Inc. rose 33 cents to $112.33 in morning trading.