LONDON (ShareCast) - Speciality pharmaceutical company ProStrakan has avoided a legal battle with Aventis Pharma by settling a tax issue out of court.
The Scottish firm will pay Aventis (Paris: FR0000120578
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news) €9.15m as settlement against a €13.4m tax liability, incurred by Aventis, arising from the sale of Proskelia sas by ProStrakan to Galapagos in December 2006.
ProStrakan, which bought the Paris-based drug discovery unit from Aventis in 2004, said at the time it would not sell any shares in Proskelia to avoid triggering a possible tax liability for Aventis.
It sold its holding in Galapagos in 2008 for €5.8m, which will be used to substantially settle the Aventis indemnity.
"I am pleased that we have been able to reach a satisfactory agreement with Aventis, within the provision that we had already made in our accounts and within our available cash reserves," said ProStrakan boss Wilson Totten.
"This is a pivotal year for ProStrakan, and we remain focused on our target of achieving break-even before the end of 2009 and our first full year of profitability in 2010."
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