New Delhi: An international arbitrator ruled that India's Glenmark Pharmaceuticals has the right to sell its HIV-associated diarrhoea drug Crofelemer in 140 countries.
Glenmark developed Crofelemer with US-based partners Napo Pharmaceuticals and Salix Pharmaceuticals Ltd.
The Indian company sought arbitration in the United States last December after Napo terminated a three-party agreement under which Glenmark holds the exclusive right to distribute Crofelemer in 140 countries including India.
Salix was to sell the drug in regulated markets such as North America, Japan and Europe.
The International Centre for Dispute Resolution found that Napo breached the agreement by disclosing confidential information about manufacturing Crofelemer to another drugmaker Aptuit Laurus, Glenmark said in a statement.
Two telephone calls to San Francisco-based Napo seeking comment went unanswered.
"This ruling will allow Glenmark to further its commitment to working with relief agencies to distribute Crofelemer to affected populations," said Chairman Glenn Saldanha.
Shares in Glenmark rose 2.3 per cent to Rs 415 as of 9:36 a.m. The broader Mumbai market gained 0.26 per cent.
Copyright @ Thomson Reuters 2012
Glenmark developed Crofelemer with US-based partners Napo Pharmaceuticals and Salix Pharmaceuticals Ltd.
The Indian company sought arbitration in the United States last December after Napo terminated a three-party agreement under which Glenmark holds the exclusive right to distribute Crofelemer in 140 countries including India.
Salix was to sell the drug in regulated markets such as North America, Japan and Europe.
The International Centre for Dispute Resolution found that Napo breached the agreement by disclosing confidential information about manufacturing Crofelemer to another drugmaker Aptuit Laurus, Glenmark said in a statement.
Two telephone calls to San Francisco-based Napo seeking comment went unanswered.
"This ruling will allow Glenmark to further its commitment to working with relief agencies to distribute Crofelemer to affected populations," said Chairman Glenn Saldanha.
Shares in Glenmark rose 2.3 per cent to Rs 415 as of 9:36 a.m. The broader Mumbai market gained 0.26 per cent.
Copyright @ Thomson Reuters 2012
