Napo, Salix Pharmaceuticals Inc. gastrointestinal news
Napo filed an opening brief in the Appellate Division of the Supreme Court of the State of New York (SCSNY) seeking to reverse SCSNY’s decision to narrow the issues for trial by jury in Napo’s breach of contract case against Salix regarding Fulyzaq crofelemer. In December 2013, the court granted Salix’s motion for partial summary judgment on certain claims of Napo’s case. In February 2014, a jury entered a verdict on the remaining claims and found that Salix complied with its obligations under a 2008 deal to commercialize Fulyzaq in the U.S. and thus did not breach the deal. Napo is also appealing the jury verdict.
In 2011, Napo filed the suit in SCSNY alleging that Salix materially breached the contract by failing to use commercially reasonable efforts to develop crofelemer. Napo was seeking a declaratory judgment that it had the right to terminate the deal plus over $150 million in damages. Napo’s appeal challenges whether Salix’s decision to withhold investment in commercial manufacturing capacity sufficient to launch Fulyzaq was reasonable and whether Salix was entitled to ignore its obligations to develop and commercialize additional indications for Fulyzaq. ...