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Chinese Manufacturer Rongyao Alleges that Pfizer Inc. (PFE) Breaches Agreement by Voluntarily Removing Poultry Feed Additive "3-Nitro" from the Market

10/13/2011 10:08:46 AM

LINHAI ZHEJIANG, China--(BUSINESS WIRE)--Zhejiang Rongyao Chemical Co. Ltd. has filed a lawsuit against Pfizer Inc. in the United States District Court for the District of New Jersey, claiming that Pfizer has breached its contract with Rongyao to purchase Roxarsone, the active ingredient in 3-Nitro, a veterinary product used primarily in the treatment of coccidiosis in poultry. Alpharma of Bridgewater, NJ, now a part of Pfizer Animal Health, had an exclusive multi-year agreement to purchase Roxarsone/3-Nitro from Rongyao, but voluntarily suspended sales of the product after a meeting with the U.S. Food and Drug Administration (FDA).

Alpharma had been a distributor of 3-Nitro for many years. In June 2011, sales abruptly stopped when Pfizer voluntarily halted distribution without any advance notification to or consultation with Rongyao, following a report by the FDA that allegedly found high levels of inorganic arsenic in the livers of treated chickens. At the time of the decision to halt the distribution, both Pfizer and the FDA had stressed that 3-Nitro did not pose an imminent public health risk and that there was no need for people to alter their chicken consumption.

3-Nitro has been used in chicken feed for over fifty years. According to Dr. Rener Chen, Rongyao’s General Manager, “The FDA’s study was incomplete, non-peer reviewed and the results, therefore, are flawed. Further expert scientific review has found it inconclusive due to various inconsistencies.”

As a result of Pfizer’s actions, effectively cancelling a multi-year deal struck in January 2011, Rongyao can no longer sell Roxarsone/3-Nitro in the US, Canada and a number of other markets, resulting in more than twenty million dollars in losses for Rongyao.

Dr. Chen further stated that, “The timing of Pfizer’s decision to voluntarily suspend its sales of 3-Nitro, under the veil of the FDA study and the associated FDA pressure, is suspect as it comes at the same time as reports in the industry that Pfizer is looking to completely sell off all of its Animal Health division and remove itself from this market altogether.”

Rongyao has requested judgment in its favor for all compensatory damages, including but not limited to lost profits, plus interest, attorneys’ fees, and further relief that the Court deems just and proper. The filing was made in US District Court for the District of New Jersey on October 3, 2011.

About Zhejiang Rongyao Chemical Co. Ltd

Zhejiang Rongyao Chemical Co., Ltd. is a specialty veterinary medicine manufacturer, appointed by the Agriculture Bureau of Zhejiang province. It is located in Linhai Zhejiang Chemical area. The company’s main products include the large-scale manufacture of Arsanilic acid, Zoalene, Roxarsone, Betaine, Allicin. Nitarsone, Chromium Picolinate, Vc-2-ester tripolyphosphate, Closantel, Diclazuril and Cyromazine. Product and company information can be found at:

Dr. Rener Chen, 0086-576-8558 8938
General Manager
Coughlin Duffy LLP
Mr. Timothy I. Duffy, Esq., 973-631-6002

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