Dr. Reddy's Laboratories (RDY) said Friday it had settled its claims against Canada-based Nordion Inc. (NDZ) in a case pending in the US District Court for the District of New Jersey, for a cash payment of $22.5 million by Nordion to Dr. Reddy's.
The settlement was concluded on 20 March 2013, with the receipt of the settlement funds by Dr. Reddy's.
The case was brought by Dr. Reddy's in April 2009 seeking damages sustained by the company caused by a claimed breach by Nordion (then known as MDS Inc. ) of its Laboratory Services Agreement with Dr. Reddy's.
Nordion, as a contract research organization, provided laboratory services to Dr. Reddy's, including bio-equivalency studies, to support Dr. Reddy's regulatory applications for approval of generic drugs, including Abbreviated New Drug Applications filed with the US Food and Drug Administration for approval to market generic drugs in the US.
The case arose after the FDA cited MDS with violations of good laboratory practices which caused the FDA not to accept, without further substantiation, MDS's laboratory reports performed during the period 2000-2004.
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