WILMINGTON, MASS. - DUSA Pharmaceuticals Inc. and River's Edge Pharmaceuticals LLC. announced that they have entered into a settlement and mutual release agreement to dismiss the lawsuit brought by DUSA against River's Edge asserting a number of claims arising out of River's Edge's alleged infringement of U.S. Patent No. 6,979,468 under which DUSA has marketed, distributed and sold Nicomide.
According to a press release DUSA Pharmaceuticals Inc., under the terms of the agreement, River's Edge acknowledges the validity and enforceability of the Nicomide patent.
River's Edge has agreed to make a lump-sum settlement payment to DUSA for damages and will permanently cease the manufacture, distribution and sale of its nicotinamide product, NIC 750. River's Edge will immediately notify the drug databases that NIC 750 is no longer available.
"We are very pleased to have fully resolved the dispute with River's Edge. The settlement underscores DUSA's commitment to protecting its intellectual property," President and CEO of DUSA Pharmaceuticals Inc. Bob Doman said.
"We intend for the settlement with River's Edge to send a strong signal that, moving forward, DUSA will vigorously defend its patent estate and intellectual property," he added.
Also, River's Edge will withdraw and cease participating in the re-examination of Nicomide's patent by the United States Patent and Trademark Office, and will consent to the return to DUSA of the entire bond, with all accrued interest, that is currently being held by the US District Court, District of New Jersey.
"DUSA will continue to deploy its strategic Nicomide sales program across the US our customers and their patients have continued to support Nicomide,” Doman concluded.
As part of the settlement, DUSA has granted a perpetual exclusive license to River's Edge to manufacture and sell four of its products from the AVAR line, including AVAR cleanser, AVAR gel, AVAR E-emollient cream and AVAR E-green which are non-strategic for DUSA in exchange for a royalty, including a guaranteed minimum annual royalty, for three years.
DUSA will transfer its existing inventory of these products to River's Edge so that the supply of the products will not be interrupted.
DUSA Pharmaceuticals Inc. is an integrated dermatology pharmaceutical company focused on the development and marketing of its Levulan Photodynamic Therapy technology platform and complementary dermatology products.
