Impax settles long running Solvay suit

USA-based pharmaceutical company Impax Laboratories says that it has settled a suit brought against it in 2003 by Belgian pharmaceutical and chemicals group Solvay. The action alleged that Impax engaged in false advertising practices dating back to 1998 in connection with the marketing of two of the company's Lipram pancreatic enzyme supplements, as well as two discontinued pancreatic enzyme supplements.

Under the settlement terms, Impax will pay $23.0 million to Solvay, $12.0 million from its current cash reserves. The remaining balance will be paid over the next six years. Impax added that sales and gross profits from the two Liprams had not been material to its prior financial results.

Barry Edwards, Impax' chief executive, said that, although the firm maintained that the suit was without merit, it had decided to settle to avoid further potential costs.