Interneuron Sues AHP Over Drug Contract

American Home Products, already facing thousands of lawsuits related to its diet drugs, was sued by its marketing partner Interneuron Pharmaceuticals, which alleges that AHP concealed the health risks associated with the use of the combination of the drugs Pondimin (generic name: fenfluramine) and phentermine, more commonly known as fen-phen. Interneuron, which is based in Lexington, Mass., is seeking unspecified damages in the suit, filed in Middlesex Superior Court in Massachusetts. Interneuron said the information was vital to help it assess the safety of Redux, a chemical cousin of Pondimin, which was developed by Interneuron and marketed by AHP. AHP’s failure to disclose the safety risks from February through June 1997 prevented Interneuron’s taking action, including possibly a move to take Redux off the market earlier, Interneuron said. AHP denied any wrongdoing with respect to its contractual obligations with Interneuron. A spokesman said AHP, which is based in Madison, N.J., also disclosed all safety data on its anti-obesity drugs to the Food and Drug Administration. Pondimin and Redux were taken off the market in September 1997. American Home shares fell $5.44 to close at $42.56 on the NYSE, and Interneuron shares rose 56 cents to close at $3 on Nasdsaq.