Pharmaceutical group Elan Corporation is facing a near $80 million (€71.25 million) lawsuit from the US group, Fuisz Technologies, for the specific performance of a share deal that Fuisz claims was agreed with Elan late last year.

Fuisz is the owner of the Irish pharmaceutical group Clonmel Healthcare - acquired for £16 million two years ago.

The claim filed in the US Federal Court in New York by Fuisz and its founder Dr Richard Fuisz alleges breach of contract.

In relation to Dr Fuisz's claims, the court has been requested to require specific performance of an agreement claimed to have been reached on November 11th, 1998, under which Elan purchased 4.2 million shares of Fuisz Technologies stock then owned by Dr Fuisz in exchange for approximately one million Elan shares. Fuisz claims that Elan has refused to close the transaction.

Fuisz is also asking the court to enforce a December 1998 option agreement, under which Elan is claimed to have agreed to pay an option fee to Fuisz for the right, until the end of January 1999, to conclude a manufacturing and licensing agreement then being negotiated regarding the production of certain Fuisz products.

A spokesperson for Elan said that no statement on the Fuisz legal action would be made "at this time". But Dr Fuisz said: "I reached an agreement and sold my Fuisz stock to Elan and shook hands on the transaction . . . I am hurt and saddened that this legal action has become necessary."

At the time of the claimed share swap agreement, the 4.2 million Fuisz shares he claims to have sold Elan were worth over more than $52 million but are now worth less than $37 million. In contrast, the one million Elan shares involved in the alleged share swap arrangement have risen in value from $67 million to nearly $80 million.