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Associated Press

Barr, Kos Pharma in Talks to Settle Suit

Wednesday March 30, 8:56 am ET

Barr, Kos Pharmaceuticals in Talks to Settle Patent Litigation Regarding Kos' Niaspan Drug


WOODCLIFF LAKE, N.J. (AP) -- Barr Pharmaceuticals Inc. and Kos Pharmaceuticals Inc. said Wednesday they are in talks to settle outstanding patent litigation regarding Kos' cholesterol reducing drug Niaspan.

Nasdaq-listed shares of Kos shot up $6.46, or 20 percent, to $39.31 in premarket activity. Barr shares closed Tuesday at $47.68 on the New York Stock Exchange.

The case is currently before the U.S. District Court for the Southern District of New York. The companies said they expect the District Court to discontinue and halt all proceedings to allow the parties to negotiate a definitive settlement agreement.

If an agreement isn't reached, Barr and Cranbury, N.J.-based Kos will have the right to have the matter reactivated.

On March 9, Barr reported that Kos Pharmaceuticals filed for a restraining order to block Barr from launching a generic version of Niaspan. The patent dispute was scheduled to go to trial in February 2006.

The Food and Drug Administration has tentatively approved Barr's generic version in three doses, with final approval expected once Kos' 30-month stay has expired. Niaspan posted 2004 sales of about $380 million.