£7.8m drug dispute is settled

PHARMACEUTICAL firm Pro-Strakan has signed an agreement with Aventis, settling a long-standing tax dispute.

ProStrakan has agreed to make a payment of £7.8 million in full and final settlement with Aventis against an £11.5m tax liability, incurred by Aventis, arising from the sale of Proskelia sas by ProStrakan in December 2006.

Commenting on the agreement, ProStrakan's chief executive, Dr Wilson Totten, said: "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.

"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."