Richter Gedeon To "Defend Itself Vigorously" In Lawsuit

Richter Gedeon has told Hungarian newspapers that it will "defend itselfvigorously" against a lawsuit filed in the USA over its alleged withdrawal from a contract to make the abortifacient mefipristone, which is also known as RU-486 (Marketletters passim).

The firm's managing director, Erik Bogsch, did not comment directly on the suit, but it was reported that investors in the firm's secondary share offering last month were told about the pending lawsuit.

The New York Times reported that a dispute between RG, the US-based Population Council (which owns US rights to the drug) and its commercial marketing division Danco Laboratories could delay launch of the product by as much as three-five years. It was also previously reported that the Population Council was negotiating with RG to try to prevent the company from withdrawing from the project.