Glenmark Pharmaceuticals on Friday said an arbitration panel in the U.S. has granted an interim order prohibiting Napo Pharmaceuticals from terminating their collaboration agreement for diarrhoea drug Crofelemer till the panel decides the arbitration.

“This order prohibits Napo from terminating the collaboration agreement or from treating the agreement as terminated unless and until the panel amends the order,” Glenmark said in a statement.

The next arbitration hearing is scheduled for end of March, Glenmark said. Comments from Napo Pharmaceuticals could not be obtained.

As per a collaboration agreement signed between Glenmark, Salix Pharmaceuticals and Napo in July 2, 2005, the Indian generic drug maker had the exclusive licence to sell Crofelemer in 140 emerging countries.

Under the pact, U.S.-based Salix Pharmaceuticals had the right to sell Crofelemer in regulated markets such as North America, Japan and Europe. However, in November last year Napo terminated the agreement.

On December 13, 2011, the company had filed a statement of claim with the American Arbitration Association against Napo Pharmaceuticals, Glenmark said.

Glenmark Pharmaceuticals had earlier said that it had sought a direction from a U.S. arbitration panel to Napo Pharma to comply with the two companies’ collaboration agreement on Crofelemer during the pendency of arbitration.

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