United Drug asks US Courts to throw out Catalent case

By Gareth Macdonald

- Last updated on GMT

Related tags: United drug

United Drug asks US Courts to throw out Catalent case
United Drug wants the US courts to throw out accusations it disclosed confidential data about Catalent’s packaging business after secret acquisition talks collapsed last year.

In the filing – Document 11 of Case 1:12-cv-05336-BSJ-RLE – United Drug and US subsidiary Sharp Corp ask the Southern District Court of New York to dismiss Catalent’s claims on the grounds that the New Jersey contract manufacturing organisation (CMO) "has not stated a claim upon which relief can be granted​.”

Catalent started the legal action on July 9​, accusing United Drug of disclosing confidential information it accessed after expressing an interest in buying the US packaging business.

The main grievance is that during two conference calls in November United Drug CEO Liam Fitzgerald revealed the packaging unit was for sale, which Catalent says was a breach of his confidentiality obligations.

Catalent also alleges that the public disclosure of the sale, coupled with other information relating to the level of investment the packaging business had received in recent years, destabilised the process and drove down the unit's market value.

In June, Catalent sold its packaging business to Fraizer Healthcare affiliate Packaging Consultants for less than $80m (€63m)​.

A spokeswoman for Ireland-based United Drug did not comment when asked to confirm the filing of the motion to dismiss but did refer Outsourcing-pharma.com to a statement the firm made last month.

United Drug PLC notes Catalent Pharma Solutions Inc.’s complaint of 9 July 2012 and strongly refutes all their allegations of wrongdoing made against United Drug and its subsidiary Sharp Corporation. 

“In all its dealings the United Drug group always acts with complete integrity, and it is not in breach of any of its obligations to Catalent Pharma Solutions.  Accordingly United Drug will be defending its position vigorously.”

The news comes just days after United Drug announced that it will buy Bilcare’s UK and US contract packaging businesses​ at the end of the month to further diversify its business and expand its offering internationally.

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