Drug-maker Glenmark said that the American Arbitration Panel has granted its request for an interim order that prohibits Napo from terminating a collaboration agreement between the companies on Napo's anti-diarrheal compound Crofelemer.
The order does not allow Napo to treat the Agreement as terminated unless and until the panel issues its order, Glenmark told the Bombay Stock Exchange. The arbitration hearing is scheduled for late March, it added.
A month ago, Glenmark had said that it had approached the American Arbitration Association against Napo Pharmaceuticals, after the latter terminated the deal on its proprietary compound.
Napo had then said that it terminated a July 2005 collaboration agreement with Glenmark, as it was “disappointed that Glenmark did not move forward to make this first-in-class drug available in any one of the 140 countries in which it was licensed to do so.”
In its claim, Glenmark said that it sought, among other things, a declaration with respect to its exclusive rights to develop, commercialise and distribute the anti-diarrheal drug Crofelemer in 140 countries.
On Napo's purported termination of the Agreement, Glenmark said that it had formally requested the Arbitration Panel to issue an interim order directing Napo to comply with the Collaboration Agreement during the pendency of the arbitration.
Glenmark shares closed up about 3 percent on the BSE, at Rs 312 on Friday.