Business in the Burbs

Par loses lawsuit, ordered to pay $69.96 million

February

Par Pharmaceutical Co. Inc., which has research and manufacturing operations in Chestnut Ridge, disclosed this morning that a federal judge in Illinois has ordered it to pay $69.96 million in connection with a lawsuit.

The company said the court entered the judgment in favor of Pentech Pharmaceuticals Inc., which alleged in 2004 that Par violated a contract with Pentech. The contract governed the supply and marketing of the generic version of Paxil, a drug for depression.

As a result of the decision, which came after a trial, Par will set aside reserves of $28 million on an after-tax basis in the fourth quarter of its fiscal 2008.

Par, which is based in Woodcliff Lake, N.J., said it received the decision yesterday and is considering an appeal.

This entry was posted on Tuesday, February 10th, 2009 at 10:08 am by Allan Drury. You can follow any responses to this entry through the RSS 2.0 feed.
Category: Biopharmaceutical

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