Dec 4 2009
NeoPharm, Inc. (Other OTC: NEOL.PK), announced today that it has reached a settlement agreement with Diosynth, RTP (“Diosynth”). As previously noted, NeoPharm reported that it had entered into various contractual arrangements with Diosynth to secure access to manufacturing capacity for the potential manufacture and regulatory advancement of Cintredekin Besudotox through early 2008.
On April 11, 2007, NeoPharm invoked the dispute resolution provisions of the contract to resolve differences between the two companies, by requesting a meeting of senior executives. On November 14, 2008, Diosynth filed a request for mediation.
On December 2, 2009, the parties entered into a Settlement Agreement to settle the dispute and avoid further mediation and arbitration. As part of the agreement, NeoPharm has agreed to pay Diosynth $150,000.
Dr. Aquilur Rahman, President and Chief Executive Officer of NeoPharm, Inc. commented, “I am pleased that we have reached an amicable outcome with Diosynth. By putting this behind us, we are able to focus solely on the development of our robust drug candidates which are in various stages of clinical development. Going forward, we expect to maintain a solid, working relationship with Diosynth.”