Cephalon shares surge on generic pact

Shares of Cephalon surged after the drug developer announced a settlement of a patent dispute with Barr Laboratories. The deal gives Barr the right to market a generic form of Provigil--a sleep disorder treatment--under a license that is slated to begin in 2011. The agreement marks the last of four generic deals hammered out over Provigil. But the FDA added a sour note to Cephalon's day when it announced that it would take an additional three months to review the drug developer's other sleep disorder drug, Nuvigil. Action had been expected January 31.

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