Apotex seeks $118 million from Panacea for collaboration pact breach

Canada-based Apotex Inc has demanded $118.14 million from Panacea Biotec for violating a 2014 collaboration agreement, the capital-based drug company said on Thursday.

The company received a notice from the International Court of Arbitration in Paris on October 4 indicating that arbitration proceedings have been initiated at the request of Apotex Inc, Panacea Biotec said in a filing with the regulator.

Apotex has alleged that the company breached its obligations under the cooperation agreement for research, development, licensing, supply and sale of inked products on May 9, 2014, it added.

Apotex has alleged that there has been an alleged delay in obtaining approval from the US Food and Drug Administration for the product mentioned in the said agreement, according to Panacea Biotec.

“Apotex has claimed $118.14 million for excessive alleged losses plus interest thereon, to the fullest extent permitted under applicable law,” it added.

The company believes it is not in breach of its obligations and the claims filed by Apotex are frivolous, unsubstantiated, based on fundamental factual errors and incorrect legal assumptions regarding the collaboration agreement and contrary to the overwhelming facts and evidence, according to Panacea Biotec .

The outcome of these arbitration proceedings is not reasonably expected to have any material financial impact on the Company or its material subsidiary, the company said.

“The company has engaged its international legal counsel to file its response disputing Apotex’s claim, and to file a counterclaim for recovery of dues to which the company is entitled under the said collaboration,” it added Panacea Biotec added.