Deprenyl Research Ltd. and Canguard Health Technologies Inc.have agreed to suspend legal actions and seek an out-of-courtsettlement in a dispute over whether Canguard is infringing apatent that covers production of l-deprenyl, a treatment forParkinson's disease.
Chinoin Pharmaceutical and Chemical Works Co. Ltd. ofHungary licensed Canadian rights to the production patent onthe drug to Deprenyl Research, which markets l-deprenyl as atreatment for late-stage Parkinson's under the name Eldepryl.Canguard is developing a branded generic based on l-deprenyl,called Parkinyl, for the same indication.
Canguard maintains that its method of producing Parkinyl doesnot infringe the Chinoin patent. Canguard on Thursday agreedto refrain from importing, selling or testing l-deprenyl inclinical tests or laboratories for the next 30 days. But thecompany is "proceeding as planned" on development ofParkinyl while seeking an out-of-court settlement withDeprenyl Research, said Dr. John Armstrong, Canguard'spresident and chief executive officer.
Deprenyl Research had been seeking a restraining order againstCanguard in Canadian federal court.
Deprenyl stock (NASDAQ:DEPLF) closed Thursday at $18.63, up13 cents. -- KH
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