US regulators have dropped part of a probe into whether pharmaceutical company Elan wrongfully blocked a generic rival to its muscle relaxant medicine Skelaxin. The investigation ruined Elan's planned sale of the drug.
Elan said the US Federal Trade Commission had sent it a letter saying it would not press any charges against the Athlone-based company for using a new patent to block cheaper copycat forms of the drug.
Elan had planned to sell the US rights to Skelaxin and another drug, sleeping pill Sonata, to King Pharmaceuticals. The US-based King backed out of the $850m deal last month after the FTC begin its probe.
Elan then sued King and alleged that King was unfairly breaking its agreement to buy Elan's rights to both Skelaxin and Sonata. Their court battle is slated to begin next week.
'We believe that the FTC's letter further confirms and validates our previously stated position that all conditions to King's agreement to close its purchase of Elan's primary care franchise have at all times been, and continue to be, satisfied,' Kelly Martin, Elan's Chairman and CEO, said in a statement today.
Elan did not say what further matters the FTC is investigating.
Elan shares closed 16 cent higher at €3.76 in Dublin this evening.
