Bloomberg reported Tuesday that AstraZeneca is being sued by Verus Pharmaceuticals in a US state court for over $1 billion. The lawsuit is based on the drugmaker’s termination of a deal to buy Verus’ paediatric asthma drug programmes, and AstraZeneca’s subsequent signing of a similar deal with MAP Pharmaceuticals for a competing product soon thereafter.

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Verus stated that AstraZeneca advised the company in November that due to toxicity results, development of a formulation of Pulmicort (budesonide) for children was not “practicable” and that regulatory proceedings with the FDA were “not feasible.” In December, AstraZeneca refused to let Verus exercise a repurchase option under their agreement on the basis that the deadline had passed, according to the plaintiff.

In addition, the lawsuit claims that AstraZeneca cancelled third-party contracts that had been arranged as part of the terminated deal. Verus suggests this shows that the drugmaker tried to “sabotage Verus’ chances of receiving FDA approval” on its own for the compound, and thereby gave an advantage to AstraZeneca’s venture with MAP. The lawsuit is seeking $280 million in compensatory damages and $1 billion in punitive damages.

AstraZeneca said it “denies any allegation that it acted improperly or illegally in connection with Verus.” Spokesperson Emily Denney explained that “after careful consideration and deliberation, the collaboration terminated under the express terms of the agreements, when AstraZeneca elected not to exercise its absolute contractual right to proceed with the project.”

Source: FirstWord

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