A federal appeals court on Tuesday rekindled claims by Bristol-Myers Squibb Co. that it permitted Mylan Laboratories to sell a low-cost version of its patented HIV drug in countries struggling to cope with AIDS, only to have Mylan exceed the scope of the agreement.

In a seven-page order, the U.S. Court of Appeals for the Second Circuit ruled that a judge was too quick to dismiss a $15 million breach of contract case that BMS brought against Mylan two years ago. The panel held that the lower court improperly construed a distribution agreement between the two companies. Under the correct interpretation, BMS plausibly alleged that Mylan shouldn’t have sold the drugs to an international nongovernmental health agency, the Second Circuit concluded.

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