Novartis Sues Baxter Over Supply of Medicine for Dogs (Update3)
By Phil Milford
Dec. 27 (Bloomberg) -- Novartis AG, Europe's third-biggest drugmaker, sued a Baxter International Inc. unit claiming it is cutting off supplies of the only drug approved to treat canine Addison's disease, a sometimes fatal glandular disorder in dogs.
Novartis Animal Health US Inc., based in Greensboro, North Carolina, said in a Dec. 22 complaint in Wilmington, Delaware, that Baxter abruptly ended a 10-year agreement begun in 1998 to produce the drug Percorten-V. Baxter intends to provide just four batches next year instead of the 31 it promised, the complaint said.
Baxter is overcommitted to serving other customers, and its solution ``has been to prioritize the customers it most prefers to serve rather than adhering to its contract with Novartis,'' the complaint said. If the drug is unavailable, ``thousands of dogs in the U.S. and Canada will die,'' the complaint said.
Percorten-V is the only veterinary product approved by the U.S. Food and Drug Administration to treat the disease, Basel, Switzerland-based Novartis said in court papers.
Addison's disease affects the adrenal glands and can cause dogs extreme fatigue, dehydration and death, according to the petwellness.com animal-information Web site.
``We remain committed to attempting to resolve the issues raised by Novartis in our discussions with them and transitioning their production to a new manufacturer,'' said Tom Kline, a spokesman for Deerfield, Illinois-based Baxter.
Novartis Production
Brandi Robinson, a Novartis spokeswoman, didn't return phone and e-mail messages.
Novartis said in court papers it may make Percorten-V itself or find another supplier. That production would be delayed by extensive testing and certification by the U.S. and Canada, the company said.
American depositary receipts of Novartis, each representing one ordinary share, rose 15 cents to $57.73 in New York Stock Exchange composite trading. The shares have risen 10 percent this year. The company reported $32.2 billion in sales last year.
Shares of Baxter, with $9.84 billion in 2005 sales, rose 41 cents to $46.76. The stock has risen 24 percent this year.
The case is Novartis Animal Health US Inc. v. Baxter Pharmaceutical Solutions LLC, CA2642-N, Delaware Chancery Court (Wilmington).
To contact the reporter on this story: Phil Milford in Wilmington, Delaware, at pmilford@bloomberg.net .
Last Updated: December 27, 2006 17:09 EST
Noven Pharmaceuticals stock quotes
Noven Pharmaceuticals stock charts
Follow this thread
