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Glaxo Sues Hospira Over Quality of Flu Vaccine Supply

GlaxoSmithKline Plc (GSK) sued Hospira Inc. (HSP) seeking more than $25 million in damages over the quality of influenza vaccine supplies.

London-based Glaxo’s Belgian biologicals unit alleges Hospira agreed in 2010 to supply the vaccine for U.S. sales, subsequently failed to meet quality standards, and canceled the contract on March 22, 2012,, according to a complaint filed in federal court yesterday in New York.

“Glaxo has now sustained substantial damages” and Lake Forest, Illinois-based Hospira should pay at least $25 million plus interest and legal fees, according to the complaint.

GlaxoSmithKline, with $41.8 billion in sales last year, says Hospira, with $4 billion in annual sales, was to have continued the contract until the end of 2015, said Hospira.

Tareta Adams, a spokeswoman for Hospira, declined to comment on the lawsuit.

The case is GlaxoSmithKline Biologicals SA v. Hospira Worldwide Inc., 13-cv-1395, U.S. District Court, Southern District of New York (Manhattan).

To contact the reporter on this story: Phil Milford at pmilford@bloomberg.net.

To contact the editor responsible for this story: Michael Hytha at mhytha@bloomberg.net

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