Reuters NewMedia - January 13, 2012
* Napo had terminated collaboration deal for diarrhoea drug
* Order prevents Napo from terminating pact pending arbitration
* Glenmark shares up more than 2 pct
MUMBAI, Jan 13 (Reuters) - India's Glenmark Pharmaceuticals Ltd
said on Friday it had received an interim order from a U.S.
arbitration panel against U.S.-based Napo Pharamaceuticals Inc's
termination of a collaboration pact for an HIV-associated
The pact, signed in July 2005, had conferred exclusive rights to
Glenmark to develop, commercialize and distribute the drug,
Crofelemer, in 140 countries.
The move provides interim relief to Glenmark, which recently
started trials of the drug to treat cases of adult acute
diarrhoea, including cholera.
The arbitration panel will hold its next hearing by the end of
March, Glenmark said.
Napo terminated the pact on Nov. 10, after which Glenmark sought
Glenmark developed Crofelemer with Napo and U.S.-based Salix
Pharmaceuticals Ltd. Napo was the initial developer of the
molecule and licensed it out to Glenmark and Salix.
According to the licensing agreement, Salix would sell the drug
in regulated markets such as North America, Japan and Europe and
Glenmark would sell it in 140 other countries.
Glenmark shares, which rose as much as 2.6 percent on the news,
were trading 1.81 percent higher at 309.60 at 1:01 p.m. (0731
GMT). The overall market was up 1.04 percent.