ARTICLE | Company News

Napo, Salix Pharmaceuticals Ltd. gastrointestinal news

January 16, 2012 8:00 AM UTC

Napo said Salix filed a voluntary motion to dismiss a suit in which it was seeking access to Napo's financial books and records. According to Napo, Salix's motion is seeking a dismissal with prejudice, which Napo said will bar Salix from pursuing the same claims in the future. Napo said the motion confirms its belief that the suit was "completely without merit."

Still pending is a suit filed last year by Napo in the Supreme Court of the State of New York for the County of New York alleging that Salix acted fraudulently and breached its 2008 deal with Napo covering diarrhea candidate crofelemer by failing to use commercially reasonable efforts to carry out its responsibilities and obligations under the deal, and by fraudulently misleading Napo as to the development status of crofelemer. Napo, which is seeking monetary damages resulting from Salix's breach of contract, subsequently terminated the deal with Salix based on Salix's failure to "cure its breaches in a timely manner." The deal gave Salix rights to crofelemer in North America, Japan and Europe, excluding Liechtenstein, Norway and Switzerland. Despite the terminated deal, Salix submitted an NDA to FDA in December for crofelemer to treat HIV-associated diarrhea (see BioCentury, May 16, 2011; Nov. 21, 2011 & Dec. 19, 2011). ...