NeoPharm and Pharmacia settle cancer patent arbitrations.
NeoPharm, Inc. (Lake Forest, IL) has reached an agreement with
Pharmacia Corporation (Bedminster, NJ) and Pharmacia and Upjohn, Inc.,
to settle pending lawsuits in Delaware Chancery Court regarding who the
proper parties are in the ongoing arbitration initiated by NeoPharm in
April 2002. Specifically, following NeoPharm's initiation of the
arbitration, Pharmacia and PNU, Inc. filed a lawsuit against NeoPharm in
Delaware Chancery Court seeking a declaration that they were not bound
to arbitrate certain disputes with NeoPharm. In their lawsuit,
Pharmacia and PNU, Inc. claimed that neither PNU, Inc., the parent of
the Pharmacia subsidiary that entered into the License Agreement
(Pharmacia and Upjohn Company), nor Pharmacia Corporation, as the
ultimate parent company, were proper parties to the ongoing arbitration
between NeoPharm and Pharmacia and Upjohn Company. As a result of the
agreement, NeoPharm will continue with its ongoing arbitration claim
against Pharmacia and Upjohn Company, but will not proceed against the
parent companies in the arbitral forum. NeoPharm, however, has reserved
the right to pursue claims against Pharmacia and PNU, Inc. in a court
proceeding. NeoPharm is satisfied that Pharmacia and Upjohn Company has
sufficient assets to pay out any potential award to NeoPharm that may
result from the arbitration hearing.
The arbitration proceedings arose out of a License Agreement dated
February 19, 1999 between NeoPharm and Pharmacia and Upjohn Company
under which Pharmacia and Upjohn Company assumed responsibility for
developing LEP (Liposomal Paclitaxel) and LED (Liposomal Doxorubicin),
two of NeoPharm's anti-cancer compounds. The arbitration hearing
is scheduled to begin on May 28, 2003.
NeoPharm is a publicly traded biopharmaceutical company dedicated
to the research, development and commercialization of new and innovative
cancer drugs for therapeutic applications. The Company has a broad
portfolio of cancer compounds in various stages of development.