Costa Mesa-based Valeant Pharmaceuticals International had postitive news on a couple of fronts Thursday.
The drug maker said it settled a lawsuit against founder and former chief executive Milan Panic for $20 million.
Valeant said it’s set to get $8 million in an initial cash payment in the third quarter, with the remainder to come within a year. It said its gain from the settlement would be $18 million.
Panic founded the former ICN Pharmaceuticals Inc. in the early 1960s and ran the company with a firm fist until he stepped down in 2002 after losing a battle with disgruntled shareholders.
Valeant had a pending lawsuit agains Panic over a $33 million bonus he was paid related to the company’s 2002 spinoff of its Ribapharm unit.
Panic had filed his own volley at the company. Earlier this year, he alleged in a suit in Orange County Superior Court that Valeant directors intentionally drove down the company’s shares with false claims about performance. That allowed them to profit off stock options granted at low prices, the suit charged.
Valeant said Thursday that Panic’s lawsuit also was settled.
Meanwhile, Valeant shares were up 6.6% in trading Thursday after the company reported adjusted income from continuing operations in the second quarter of $14.2 million, nearly double a year ago.
Sales in the second quarter were up 12% to $230.2 million.
Valeant said it was making progress on its restructuring plan, which has included selling factories and shedding some workers.
The drug maker said it expects to save $20 million to $30 million in expenses in 2006 as part of the plan. Nearly all of the savings will come in the second half of the year.
Cost savings are expected to be $50 million to $70 million in 2007 and 2008.
