Irish pharmaceutical firm Elan is under investigation by the US competition authorities into allegations of the unfair marketing of one of its pain-relief drugs.
In a statement released this afternoon, Elan said the US Federal Trade Commission (FTC) has started an investigation to determine Elan broke competition rules in marketing Skelaxin.
Elan has already agreed to sell its rights to Skelaxin to King Pharmaceuticals as part of its debt reduction programme. King also received the FTC notification.
Elan's shareholders are due to approve the sale to King at an extraordinary general meeting to be held on for March 18th.
The company said it is reviewing the FTC notification and is evaluating its potential impact.
In February Elan was subpoenaed by the FTC in an investigation into price fixing of its drug Naprelan.
In 2002 the FTC settled an antitrust case against Elan and Toronto-based Biovail. The two pharmaceutical companies were accused of dividing up the market for the generic version of a popular blood-pressure medication.