US court dismisses Tercica's case against Insmed

Insmed has welcomed a motion passed by the US District Court for the Northern District of California to dismiss a complaint filed by fellow USA-based drugmaker Tercica. This is the latest development in the litigation between the two firms, which are both developing endocrine products to treat short stature and are competing for the marketing exclusivity afforded by Orphan Drug status. Tercica's complaint, filed and amended in December 2005, accused Insmed of violations for allegedly false and misleading statements. In dismissing the complaint without leave to amend, the court ruled, among other things, that Tercica had not met its burden of establishing that the alleged statements made by Insmed constitute false advertising, or that the court's jurisdiction over the accused was proper in this case.