Dr Reddy’s announces claims settlement with Nordion

Dr Reddy's has announced that claims against Nordion Inc have been settled.

In a case pending in the US District Court for the District of New Jersey, it was decided that a cash payment of 22.5 million dollars (14.9 million pounds) is to be made by Nordian to Dr Reddy's.

The latter company first brought the case against the former in April 2009, seeking damages sustained after Nordian – which was then called MDS – claimed a breach of its Laboratory Services Agreement with Dr Reddy's had taken place.

After the United States Food and Drug Administration (USFDA) cited MDS with violations of good laboratory practices, the USFDA did not accept MDS's laboratory reports from the period of between 2000 and 2004.

Dr Reddy's received laboratory services from Nordion – including bio-equivalency studies – that were used to support Dr Reddy's regulatory applications for approval of generic drugs.