Abbvie Accuses Takeda of Failing to Meet Lupron Supply Agreement

(Bloomberg) -- A unit of Abbvie Inc. accused Japanese drugmaker Takeda Pharmaceutical Co. of failing to produce enough of the cancer drug Lupron to fulfill a supply agreement.

Officials of AbbVie Endocrine Inc. contend in a lawsuit filed in Delaware Chancery Court that Takeda either didn’t produce enough syringe-filled units of Lupron or is improperly allocating them to other customers.

In June, U.S. regulators warned Takeda about manufacturing problems uncovered at its plant in Hikari, Japan, that produces Lupron and the Crohn’s disease drug Entyvio for the U.S. market. Fixing those problems triggered a Lupron shortage, the company said in earnings reports. Lupron is used to treat prostate and breast cancer as well as endometriosis.

Officials of the Abbvie unit said in a public filing that they want “specific performance” of the supply agreement, along with damages.

U.S. representatives of the Japanese drugmaker didn’t immediately return an email Monday seeking comment on the lawsuit, filed Nov. 6 under seal.

Shares of Takeda fell 2.4% on June 17 after the U.S. Food and Drug Administration sent a warning letter about conditions inspectors found at the Hikari plant. The problems included flawed procedures “that are designed to prevent microbiological contamination of drug products purporting to be sterile,” according to the letter.

Takeda officials said in August that they anticipated a “temporary supply shortage” of Lupron in Japan and some regions of the U.S. while they addressed the production problems.

The case is AbbVie Endocrine Inc. v. Takeda Pharmaceutical Co., No. 2020-0953, Delaware Chancery Court (Wilmington).

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