Bloomberg Law
March 24, 2023, 5:18 PM

NACS Ignored Bugs in Drugs, Lyra Therapeutics Claims in Lawsuit

Mike Leonard
Mike Leonard
Legal Reporter

Lyra Therapeutics Inc. sued NACS Inc., claiming the contract manufacturer wasted more than $10 million of the pharmaceutical company’s money by ignoring quality control and producing “zero usable product.”

The lawsuit, made public Thursday, accuses NACS of breaching its agreements with Lyra, which included warranties and other protections covering any defects in the drug-device combination NACS was manufacturing, an “innovative” treatment for chronic nasal sinus inflammation.

NACS repeatedly “allowed product that was too long, too short, the incorrect weight, or, incredibly, was contaminated with insects, cardboard, and glass, to pass through its ‘inspection’ procedures,” according to the complaint.

The problems ...

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