CORONA, Calif. (AP) -- Johnson & Johnson's said Tuesday it made a deal with Watson Pharmaceuticals Inc. to sell a generic version of the attention deficit hyperactivity disorder drug Concerta.
The companies had been in a patent dispute over the drug. In April, an appeals court affirmed that a disputed patent on the drug was invalid. That ruling upheld a prior decision saying Watson's plans to make a generic version of the drug did not infringe on J&J's patent.
The pill is the fourth-best-selling prescription drug for Johnson & Johnson, with global sales of $299 million in the third quarter.
Under the deal with J&J, Watson will start selling a generic version of the drug on May 1 in the U.S. J&J will be the supplier for the "authorized" generic product. J&J will receive a share of the net sales from the generic product. The deal runs until the end of 2014.
During the term of the agreement, Watson will be permitted to continue to pursue U.S. Food and Drug Administration approval of its version of Concerta and can launch that version at the end of the J&J supply deal.
Other terms of the deal were not disclosed.
In morning trading, shares of Watson Pharmaceuticals rose $1.71, or nearly 4 percent, to $48.35. J&J stock added 35 cents to $64.04.
The companies had been in a patent dispute over the drug. In April, an appeals court affirmed that a disputed patent on the drug was invalid. That ruling upheld a prior decision saying Watson's plans to make a generic version of the drug did not infringe on J&J's patent.
The pill is the fourth-best-selling prescription drug for Johnson & Johnson, with global sales of $299 million in the third quarter.
Under the deal with J&J, Watson will start selling a generic version of the drug on May 1 in the U.S. J&J will be the supplier for the "authorized" generic product. J&J will receive a share of the net sales from the generic product. The deal runs until the end of 2014.
During the term of the agreement, Watson will be permitted to continue to pursue U.S. Food and Drug Administration approval of its version of Concerta and can launch that version at the end of the J&J supply deal.
Other terms of the deal were not disclosed.
In morning trading, shares of Watson Pharmaceuticals rose $1.71, or nearly 4 percent, to $48.35. J&J stock added 35 cents to $64.04.
