GlaxoSmithKline (NYSE:GSK) is suing injectable drugs maker Hospira (NYSE: HSP) over the quality of its influenza vaccine supplies.
Bloomberg News reports that GSK seeks more than $25 million in damages.
GSK’s Belgian biologicals unit alleges Hospira agreed in 2010 to supply the vaccine for U.S. sales, subsequently failed to meet quality standards, and canceled the contract on March 22, 2012, according to a complaint filed in federal court Thursday in New York.
“Glaxo has now sustained substantial damages” and Lake Forest, Illinois-based Hospira should pay at least $25 million plus interest and legal fees, according to the complaint.
GSK, with $41.8 billion in sales last year, says Hospira, with $4 billion in annual sales, was to have continued the contract until the end of 2015, said Hospira.
Tareta Adams, a spokeswoman for Hospira, declined to comment on the lawsuit.
Hospira has been in hot water with the Food and Drug Administration for problems at some of its manufacturing plants. The Illinois company operates two North Carolina manufacturing facilities; the Rocky Mount site is the company’s largest. The company has spent more than a year and millions of dollars to bring the facility into compliance. But FirecePharma notes that Hospira is recalling five different products even as FDA inspectors are working on a final inspection of the plant.
Hospira said all of the recalls are voluntary and there have been no reports of patients being affected by the recalled products.
GSK operates its North American headquarters in RTP.
