MORRISVILLE, N.C. — A dispute has broken out between BioDelivery Sciences International, which is based in Morrisville, and Clinical Development Capital, one of its investors.

In a series of Securities and Exchange Commission filings, BDSI says CDC, which is a fund operated by Care Capital of Princeton, N.J., violated a clinical development and license agreement between the two firms.

Care Capital, meanwhile, is seeking to terminate the agreement under which it has provided $7 million in investment in exchange for BDSI stock. BDSI is testing a cancer treatment patch targeting severe pain related to cancer.

The patch, which is combined with a powerful narcotic, is undergoing Phase 3 clinical trials. It delivers the drug through the lining of the mouth.

BDSI said in one of two filings that CDC violated the agreement between the firms in bidding to acquire remaining rights to the technology BDSI has licensed from QLT USA for the drug delivery technology. Earlier this month BDSI said it had paid $3 million for international marketing rights to QLT USA and secured an option to U.S. rights for $7 million.

The drug delivery technology is known as BEMA. The drug involved is Fentanyl.

CDC’s action “damaged” BDSI, the company said. CDC also has thus far refused to comply with “negotiated dispute resolution provisions” of the agreement with BDSI, the filing said.

Elliot Associates, a New York hedge fund, owns a majority of the interest in CDC, according to BDSI’s filing.

CDC notified BDSI on Aug. 30 that it intended to terminate the agreement.

“In its notice, CDC alleges that BDSI breached the [agreement] by violating certain notice and approval provisions and by failing to comply with applicable laws and protocols in California with respect to the clinical trials involving the BEMA Fentanyl product,” BDSI said. “BDSI is in the process of addressing this matter and believes it will be able to resolve the same in the ordinary course of conducting the BEMA• Fentanyl program, consistent with the terms of the [agreement].”

BDSI (Nasdaq: BDSI) stock fell slightly, to $2.28, in late afternoon trading Thursday.

BDSI: www.bdsinternational.com