UPDATE 1-Perrigo gets FDA approval for generic Olux Foam

(Adds details, stock movement)

March 11 (Reuters) - Perrigo Co (PRGO.O: Quote, Profile, Research) said regulators approved its generic version of Stiefel Laboratories' Olux Foam to treat moderate to severe dermatosis of the scalp, but a federal court temporarily restrained Perrigo from making the product on a motion filed by the seller of the branded drug.

The patent infringement suit was filed by Connetics Corp, which Stiefel acquired in 2006.

The court temporarily restrained Perrigo from making, selling or importing the product, pending the outcome of a hearing on March 19, the company said in a statement.

Perrigo said the U.S. Food and Drug Administration's final approval is for clobetasol propionate foam, 0.05 percent.

As the first filer for the generic, Perrigo will be eligible for 180 days of marketing exclusivity once it launches the product, it said.

According to Wolters Kluwer data, Olux Foam's had sales of about $85 million for the 12 months ended January 2008, Perrigo said.

Shares of Perrigo were up more than 5 percent at $33.95 in afternoon trade on Nasdaq. (Reporting by Esha Dey in Bangalore; Editing by Vinu Pilakkott)