ASTRAZENECA-ASTHMA-UP

A San Diego company sued AstraZeneca for $1.28 billion on Tuesday, accusing the pharmaceutical giant of backing out of a deal to develop a children’s asthma drug and instead aligning with a competitor.

Verus Pharmaceuticals Inc. sued in New York state court, seeking at least $280 million in compensatory damages and $1 billion in punitive damages from AstraZeneca.

Verus alleges that once AstraZeneca entered a deal with Map Pharmaceuticals Inc., it sought to kill any competition by destroying Verus’ ability to develop the drug on its own.

AstraZeneca, which is based in London, agreed in 2007 to pay more than $310 million to Verus for its pediatric asthma-medicines program. Under the deal, Verus got $30 million immediately, with AstraZeneca paying an additional $280 million if the program met sales targets, Verus said at the time.

The collaboration ended under terms of the agreement, an AstraZeneca spokeswoman said. AstraZeneca denies any allegation that it acted improperly or illegally in connection with Verus.

Verus specializes in treatments for asthma, allergies and related conditions in children.

AstraZeneca and Verus had sought to develop a new formulation of the active ingredient in the British company’s Pulmicort asthma drug that would work faster and be easier to use.