Glenmark files arbitration claim against Napo Pharmaceuticals

MUMBAI: Glenmark Pharmaceuticals said it has filed arbitration claims against US-based Napo Pharmaceuticals for ending a contract with Glenmark to develop and market diarrhea drug Crosfelemer.

“Glenmark vehemently denies that Napo has any basis for terminating the Collaboration Agreement, and Glenmark is seeking a declaration from an arbitration panel that Napo’s claims of breach are unfounded,” said Glenmark in a statement to stock exchanges.
The move comes as a stumbling block for Glenmark’s plans to sell and market the drug in 140 countries. Reacting to the news, Glenmark shares ended 4% down on Tuesday at Rs 294. Glenmark had in-licensed Crosfelemer from Napo in 2006 to sell the drug in developing countries.

At that time this drug was in phase-1 of clinical trial. The drug is now in phase-3 trail and would be ready for launch in developing countries by first half of 2013.

The Mumbai-based drug maker has developed the potential $80-million revenue drug with US partners Napo and Salix Pharmaceuticals. The drug can be used in treatment of HIV-related diarrhea.

In August, Glenmark had filed a similar arbitration suit to prevent Napo from distributing the anti-diarrhoea drug in Glenmark’s territories through relief agencies.