BRISTOL, Tenn.--(BUSINESS WIRE)--King Pharmaceuticals, Inc. (NYSE: KG) today reported the results of a binding arbitration proceeding with Elan Corporation, plc regarding an agreement concerning the development of a modified release formulation of King’s insomnia product, Sonata® (zaleplon), which King refers to as the “Sonata® MR Development Agreement.” King and Elan entered into the Sonata® MR Development Agreement in June 2003 when King acquired Elan’s Primary Care business in the United States, which included Sonata®. In early 2005, King advised Elan that it considered the Sonata® MR Development Agreement terminated for failure to satisfy the target product profile required by King. Elan disputed the termination and initiated the arbitration proceeding. The arbitration panel has reached a decision in favor of Elan and ordered King to pay Elan certain milestone payments and other R&D related expenses of approximately $49.8 million, plus interest from the date of the decision.
