King Pharmaceutical shares up on news of patent lawsuit dismissal

Shares of King Pharmaceuticals Inc. soared Tuesday after the company said it had ended a patent infringement lawsuit filed against CorePharma LLC related to its drug Skelaxin, a muscle relaxant.

All the claims, including Core's counterclaims, were dismissed without prejudice in a New York federal court.After the dismissal was announced in a filing with the Securities and Exchange Commission, shares of King rose 13% to $11.74 on heavy volume.

Under the terms of a termination agreement King entered with Core on Jan. 2, King will grant Core a nonexclusive license to make and sell a 400 mg metaxalone product, in what amounts to a generic form of Skelaxin.

The license will be effective on Jan. 1, 2012, or six months after a third party sells a generic form of Skelaxin, whichever occurs first.The lawsuit was first filed on March 7, 2003. Other suits were filed against Eon Labs Inc.

and Mutual Pharmaceutical Co., both of whom King said had filed to make a generic form of Skelaxin.

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