Dr Reddy's in $22.5 million settlement with Nordion

India’s second largest drugmaker Dr Reddy’s Laboratories (NYSE: RDY) said last Friday (March 22) that it had settled its claims against Canada-based contract research organization Nordion (TSX: NDN, formerly MDS Inc) in a case pending in the US District Court for the District of New Jersey, for a cash payment of $22.5 Million by Nordion. The settlement was concluded on March 20, 2013, with the receipt of the settlement funds by Dr Reddy’s.

The case was brought by Dr Reddy’s in April 2009 seeking damages sustained by the company caused by a claimed breach by Nordion of its laboratory services agreement with Dr Reddy’s. The 2009 complaint from Dr Reddy's related to repeat study and mitigation costs of $10 million and lost profits of $70 million.

Nordion provided laboratory services to Dr Reddy’s, including bio-equivalency studies, to support the Indian firm’s regulatory applications for approval of generic drugs, including Abbreviated New Drug Applications filed with the US Food and Drug Administration for clearance to market generics in the USA.