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American Arbitration Association to Decide Diarrhea Drug Rights

Monday, August, 15, 2011

Diarrhea Drug Case Goes Before American Arbitration Association


The American Arbitration Association has received an arbitration claim filed by Glenmark Pharmaceuticals Company against the competing firm of Napo Pharmaceuticals, Incorporated.  Glenmark has requested that the AAA issue a declaration that it holds an exclusive right to develop, market, and distribute Crofelemer, a drug intended to treat diarrhea.  At issue is control of the drug in 140 different nations around the world.


Glenmark's filing to the Bombay Stock Exchange also specified that the company is seeking to control the release of the drug even when relief agencies in those 140 countries are involved.  Diarrhea in developing nations is a serious illness responsible for thousands of death from dehydration each year.


American Arbitration Association to Weigh Claims


Napo has indicated interest in distributing Crofelemer through relief agencies, which are frequently regarded as forming a mainstay against the spread of water-borne contagious diseases, many of which lead to bouts of uncontrollable diarrhea.  Glenmark, however, insists that it possesses all the necessary resources to work with relief agencies on its own and believes that commercial arbitration will bear this out.  The licensing agreement will be weighed by the American Arbitration Association in an effort to resolve this dispute -- one which is of vital importance not only to the corporate outlook for these firms, but also to world health itself.