Apotex seeks $118 million from Panacea for collaboration pact breach

Canada-based Apotex Inc has sought USD 118.14 million from Panacea Biotec over breach of a collaboration agreement inked in 2014, the capital-based drug firm said on Thursday.

The company has received a notification dated October 4 from the International Court of Arbitration, Paris, intimating that an arbitration proceeding has been initiated as per a request by Apotex Inc, Panacea Biotec said in a regulatory filing.

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

Apotex has alleged that there has been a purported delay in seeking approval from US Food and Drug Administration for the product mentioned in the said agreement, Panacea Biotec said.

"Apotex has claimed USD 118.14 million towards outsized alleged losses plus interest thereon to the extent permissible under the applicable law," it added.

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

The outcome of this arbitration proceeding is not reasonably expected to have any material financial impact on the company or its material subsidiary, it said.

"The company has engaged its international legal counsel to file its response contesting the claim raised by Apotex as well as to file a counter-claim for recovery of dues to which the company is entitled under the said collaboration," Panacea Biotec added.