The International Centre for Dispute Resolution (ICDR) ruled in favour of Glenmark on the arbitration claim it filed on August 8, 2011 against Napo Pharmaceuticals seeking, among other things, a ruling that Glenmark’s exclusive rights to develop, commercialise and distribute Crofelemer in 140 countries for treatment of diarrheal diseases. The claim also includes the exclusive rights to distribute though relief agencies in these countries and an injunction prohibiting Napo from sharing confidential information concerning the manufacture of Crofelemer.
The ICDR ruled that Glenmark’s exclusive rights to commercialise and distribute Crofelemer include the exclusive right to distribute Crofelemer through relief agencies to 140 countries that comprise the Glenmark territory. The ICDR also ruled that Glenmark has two years from the time Crofelemer is approved in India (on an indication by indication basis) to file for regulatory approval in 140 countries in its territory. Finally, the ICDR found that Napo breached the collaboration agreement by disclosing confidential information concerning the manufacture of Crofelemer to Aptuit Laurus and enjoined Napo from disclosing such confidential information to third parties and from purchasing or obtaining Crofelemer from Aptuit.
“We are delighted that the arbitrators have reaffirmed Glenmark’s rights to commercialise Crofelemer through relief agencies. This ruling will allow Glenmark to further its commitment to working with relief agencies to distribute Crofelemer to affected populations. We also are pleased that the arbitrators have prevented Napo from sharing confidential information concerning the manufacture of Crofelemer with our competitors and other third parties,” said Glenn Saldanha, Chairman and MD, Glenmark.
