Global Processing

Pfizer, Nigeria sign $75 million Trovan settlement

August 3, 2009
U.S. drugmaker Pfizer signed a settlement worth up to $75 million with Nigeria''s Kano state related to a 1996 meningitis drug trial, the two parties said in a joint statement, reported by Reuters. The northern state of Kano sued the world''s largest drugmaker in May 2007 for $2 billion in damages over the testing of the meningitis drug Trovan, saying the drug killed 11 children and left dozens disabled. The New York-based company has denied all charges and said meningitis, not Trovan, killed the children or damaged their health. It said Trovan saved lives and was as effective as a more established drug used for comparison in the study. In a joint statement released in the Nigerian capital Abuja, "The parties agree that settlement is in the best interests of both parties as it avoids the cost and distraction of protracted litigation and enables both of us to focus on our core mission and business.” Under the deal, Pfizer agreed to underwrite several healthcare initiatives chosen by the Kano state government totaling $30 million over a period of two years. It also agreed to establish a healthcare fund for those who participated in the 1996 Trovan study, which could disburse up to $35 million, depending on the total number of valid claims submitted and accepted by a board selected by both parties. It also agreed to reimburse Kano state for $10 million in legal costs associated with the litigation.