AHP and Interneuron bury diet drug hachet

American Home Products and Interneuron Pharmaceuticals have reachedagreement concerning their legal spat over the "fen-phen" diet drugs Pondimin (fenfluramine) and Redux (dexfenfluramine; Marketletters passim). At the beginning of last year, Interneuron filed a lawsuit claiming that ex-marketing partner AHP "deliberately withheld and concealed information" on the potential health risks of using the drugs, preventing it from taking "timely remedial actions" (Marketletter January 31, 2000).

Interneuron said the agreement includes complete indemnification for certain classes of product liability cases filed against the firm relating to Redux, which was withdrawn from the market in September 1997, and covers existing plaintiffs who have already opted out of AHP's national class-action settlement (Marketletters passim) and all claimants alleging primary pulmonary hypertension.

The pact also provides for AHP to fund additional insurance coverage to supplement Interneuron's existing product liability insurance. In addition, AHP has agreed to fund all future legal costs related to Interneuron's defense of Redux-related product liability cases. Financial terms of the agreement were not disclosed.