Cumberland Pharmaceuticals has settled two of the lawsuits it filed earlier this year against competitors that had challenged its patent for a painkiller overdose treatment.
In a filing with the Securities and Exchange Commission, Cumberland execs said their counterparts at Perrigo Co. and Paddock Laboratories have agreed not to challenge Cumberland's Acetadote patent, which runs through 2026. All companies involved will file papers in the coming days to dismiss lawsuits in Delaware and Illinois, as well as submit their agreement to the U.S. Patent and Trademark Office.
In addition, Paddock and Perrigo have agreed that they will, subject to a few exceptions, sell only a generic version of Cumberland's Acetadote should another company be approved to market its own version of the drug. Cumberland shares plummeted last week after an analyst said FDA approval of a product developed by Innopharma cast a cloud over the Nashville company's prospects.
This week's settlement removes some of the uncertainty for Cumberland, but a number of other cases filed by Cumberland this year remain unresolved. And while investors pushed up shares of the company (Ticker: CPIX) in early trading Tuesday, they lost that ground and more. At about 1 p.m. Central, they were changing hands at $4.51, down 0.8 percent on the day.