US court resolves muscle relaxant dispute by enforcing arbitration award

Polpharma’s injunction bid fails as motion is dismissed with prejudice | Court upholds Swiss Arbitration process.

The US District Court for the Western District of North Carolina has granted a motion to enforce an arbitration award in a case involving Polpharma and Kartha Pharmaceuticals. 

The court's decision, issued on July 14, 2023, brings resolution to the dispute between the two pharmaceutical companies.

The case originated from allegations made by Polpharma against Kartha Pharmaceuticals regarding a consulting services agreement and the alleged misappropriation of trade secrets related to the muscle relaxant drug Baclofen.

Polpharma's complaint, filed "in aid of arbitration" and seeking a preliminary injunction, followed a previous complaint filed by Kartha's customer, Rubicon Research.

After both parties went through the Swiss Arbitration process, a hearing was conducted in Switzerland in August, 2022.

Then the sole arbitrator issued a final award denying Polpharma's claims for a permanent injunction and Kartha's counterclaim for breach of contract, on December 20, 2022.

The arbitrator's decision also awarded costs and fees based on the outcome of the claims asserted.

In the recent ruling, the court confirmed and enforced the final award of the sole arbitrator.

The court's decision was based on the Federal Arbitration Act and the New York Convention, which established the framework for enforcing foreign arbitral awards in the US.

The court said: “None of the grounds for refusing to confirm and enforce the final award applied to this case.

“Moreover, Polpharma has no claims pending before this court other than its request for a preliminary injunction, which has become moot with the Final Award, and therefore a dismissal with prejudice is appropriate.”

As a result of the court's ruling, Polpharma's case against Kartha Pharmaceuticals effectively ends the dispute.

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