Nuvo Sues Mallinckrodt Over Drug-Development Agreement

Mallinckrodt Inc. was sued in federal court and accused by its business partner Nuvo Research Inc. of violating an agreement over drug development. Nuvo is seeking $100 million in damages.

Nuvo, based in Misissauga, Canada, contends St. Louis-based Mallinckrodt was given a U.S. license for the anti-inflammatory arthritis knee-pain medicine Pennsaid and failed to make milestone payments or conduct required clinical trials, according to court papers filed yesterday in U.S. District Court in Manhattan.

“We are disappointed that we have had to initiate legal proceedings against Mallinckrodt,” John London, Nuvo’s president and co-chief executive officer, said in a statement. The company’s board took legal action “to protect the interests of Nuvo and its shareholders,” he said.

Mallinckrodt doesn’t comment on pending litigation, Lynn Philips, media relations manager, said in a telephone interview.

The case is Nuvo Research Inc. v. Mallinckrodt Inc., 13-cv-05831, U.S. District Court, Southern District of New York (Manhattan).

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