Valeant Pharmaceuticals International, Costa Mesa, said Wednesday that it agreed to resolve a long-running dispute with the Health Fund of Serbia and the Republic of Serbia over their joint venture, Galenika.
The drug maker said it collected $28 million of a total $34 million owed to it. Valeant expects the balance to be paid next year.
Valeant Chief Executive Timothy Tyson said in a statement that he was pleased with the Serbian government’s efforts in reaching a resolution of the dispute.
Valeant’s issues with Galenika began in 1999, after the Serbian government and health fund started arbitration proceedings over the ownership and operation of Galenika.
The International Chamber of Commerce’s arbitration panel ruled in November 2004 that the Serbian entities must return the initial investment contributed by Valeant, then known as ICN Pharmaceuticals Inc., to the joint venture.
Galenika dates back to the days when Valeant was under the control of founder Milan Panic, a former Serbian prime minister.
Panic left in 2002 after losing a long-running battle with shareholders who were dissatisfied with the company’s direction. The company changed its name to Valeant in 2003.
