Biotech company

NeoPharm

(NEOL)

said it has filed for arbitration to resolve its dispute with

Pharmacia

(PHA)

over delays in the development of two drugs.

NeoPharm, a company specializing in cancer treatments, is asking for damages including lost royalty revenue caused by Pharmacia's delays in developing LEP (Liposome Encapsulated Paclitaxel) and LED (Liposome Encapsulated Doxorubicin), both treatments for various types of cancer. NeoPharm contends that the delays constitute a breach of the license agreement that gave Pharmacia full responsibility for the drugs' developments.

Pharmacia has presented a counterclaim of breach of agreement against NeoPharm concerning the nature of NeoPharm's initial disclosures.

NeoPharm was not seeking a termination of the license agreement at this time.

Shares of NeoPharm were recently trading down 32.3% to $13.82 on the news.