Printer Friendly

GYNOPHARMA WINS ARBITRATION IN PRODUCT DISPUTE WITH ORTHO

 GYNOPHARMA WINS ARBITRATION IN PRODUCT DISPUTE WITH ORTHO
 SOMERVILLE, N.J., Oct. 5 /PRNewswire/ -- An American Arbitration Association panel has ruled unanimously that GynoPharma, Inc. acted in good faith during negotiations with Ortho Pharmaceutical Corporation, a subsidiary of Johnson & Johnson (NYSE: JNJ). The arbitrators determined that GynoPharma was under no obligation to comply with demands to sell the ParaGard(R) T380A copper intrauterine device (IUD) to Ortho.
 "In entering into these good faith negotiations with Ortho, our objective was to explore avenues to support our contraceptive R&D pipeline," noted Louis R. Frisina, president and chief operating officer, GynoPharma, Inc. "During this process, it became evident that GynoPharma was uniquely positioned to continue support for the ParaGard(R) T380A IUD and develop FlexiGard(R), an IUD now in clinical trials," he added.
 ParaGard(R) is a third-generation intrauterine contraceptive. This nonhormonal birth control product has been cleared by the Food and Drug Administration for continual use for eight years, making it the longest- acting, reversible contraceptive available in the United States.
 In August 1991, GynoPharma and Ortho signed an "Agreement in Principle" that stated the proposed purchase price of ParaGard(R) and a projected date of sale. These conditions included approval of the sale by the board of directors of both companies and the signing of legal documents.
 Negotiations continued for several months, primarily due to extended review required by the Federal Trade Commission (FTC). The FTC investigation evaluated whether the proposed transaction was anti- competitive. By Dec. 1991, with a number of business points still unresolved, GynoPharma's board decided to break off negotiations. Shortly afterward, Ortho commenced arbitration seeking to require GynoPharma to sell ParaGard(R) or, alternatively, seek punitive damages. GynoPharma counterclaimed for reimbursement of expenses in the FTC investigation.
 "We are pleased that this is now behind us and we can again devote our full attention and resources to our primary corporate mission of providing cost-effective contraceptive options for women," stated Roderick Mackenzie, chairman of the board, GynoPharma. "We successfully brought the ParaGard(R) IUD to the contraceptive market with the support of expert opinion and votes of confidence from 90 million IUD users worldwide," he added.
 In their written decision, the arbitrators determined that GynoPharma had not breached a duty to negotiate in good faith and neither party was under any further obligation to the other.
 GynoPharma, Inc., headquartered in Somerville, N.J., is devoted exclusively to women's health care. The company is a leader in the research and development of new contraceptive and gynecologic products. GynoPharma markets the ParaGard(R) T380A IUD, the longest-lasting reversible contraceptive available in the United States today.
 -0- 10/5/92
 /CONTACT: Debra Bronstein of GynoPharm, Inc., 908-725-3100/
 (JNJ) CO: GynoPharma, Inc., Johnson & Johnson ST: New Jersey IN: HEA SU:


TM-LD -- NY009 -- 6429 10/05/92 09:03 EDT
COPYRIGHT 1992 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1992 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Oct 5, 1992
Words:469
Previous Article:MFS DATANET ANNOUNCES FIRST NATIONAL SERVICE DESIGNED TO INTERCONNECT HIGH-SPEED CORPORATE DATA NETWORKS
Next Article:LAIS DOWNSIZES DUE TO SLOWER THAN EXPECTED GROWTH; NINE MONTH REVENUES INCREASE FROM SAME PERIOD IN 1991, BUT ARE BELOW EXPECTATIONS
Topics:


Related Articles
COPPER IUD RECEIVES EIGHT-YEAR INDICATION; THE LONGEST-ACTING REVERSIBLE CONTRACEPTIVE PRODUCT AVAILABLE IN THE U.S.
YANKELOVICH CLANCY SHULMAN SURVEY REVEALS NEW INFORMATION ABOUT WOMEN'S BIRTH CONTROL OPTIONS
OHIO CERTIFIES FORD ARBITRATION PROGRAM
JOHNSON & JOHNSON ANNOUNCES AMGEN ARBITRATION DISPUTE
PARAGARD RECEIVES TEN-YEAR INDICATION; DOCUMENTED SAFETY PROFILE LEADS TO NEW LABELING
Robert S. Cohen Joins NitroMed Board of Directors
Cygnus Completes $10 Million Asset Sale to Animas.
Johnson & Johnson Statement on Amgen Arbitration.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters