Actelion provides update on post-trial motions in Asahi Kasei litigation
Actelion Pharmaceuticals Ltd / Actelion provides update on post-trial motions in Asahi Kasei litigation . Processed and transmitted by Thomson Reuters ONE. The issuer is solely responsible for the content of this announcement.
ALLSCHWIL/BASEL, SWITZERLAND - 29 July 2011 - Actelion (SIX: ATLN) today announced that in regard to Asahi Kasei Pharma Corp. v. Actelion Ltd. et al. (case number CIV 478533, Superior Court of the State of California, County of San Mateo), the court has granted Actelion's post-trial motion for offset of a previous arbitration payment and applied a reduction of USD 70.35 million to the May 4th jury award of USD 577 million.
On procedural grounds, the court denied Actelion's post-trial motion for an election between damages for alleged lost profits and alleged development costs.
The court indicated that the appropriate time for such an issue to be considered is after judgment has been entered. Such judgment is now expected no sooner than 8 August 2011.
Once judgment is entered, the company will file new motions which address this issue and also file an appeal.
Notes to the Editor
About the complaint
On November 19, 2008, plaintiff Asahi Kasei Pharma Corporation ("Asahi") filed a complaint at the State Court in California, US, against Actelion Ltd and its subsidiaries Actelion Pharmaceuticals US Inc., Actelion Pharmaceuticals Ltd, Actelion US Holding Company, CoTherix, Inc. ("CoTherix") and three individual officers. The action arises from a dispute involving the license and development agreement between Asahi and CoTherix for the drug compound fasudil that has been terminated upon the acquisition of CoTherix in 2007.
About the jury verdict and the upcoming appeal
On 04 May 2011 a jury awarded Asahi Kasei Pharma ("Asahi") up to USD 547 million in compensatory damages (358.95 million in alleged lost profits and 187.4 million for alleged development costs). In addition, the jury awarded punitive damages of USD 30 million against certain individual officers of the company.
The company and its external advisors believe that the jury verdict is neither supported by the facts nor is it correct as a matter of law. The company is therefore confident that there are significant grounds for a successful appeal, which will be filed in due course following entry of judgment and rulings on further post-trial motions.
About previous motions filed by Actelion
In May 2011, Actelion filed motions asking for an election between damages of USD 358.95 million for alleged lost profits or USD 187.4 million in alleged development costs. In addition, from either amount the motion is asking for the deduction (off-set) of USD 78.4 million from a previous payment related to arbitration proceedings in 2009.
About Actelion's provisions
Actelion recorded a provision of USD 577 million (approx CHF 485 million) in the second quarter financial statements. The provision will be adjusted once judgment is entered and decisions on post-trial motions are finalized.
Actelion Ltd is a biopharmaceutical company with its corporate headquarters in Allschwil/Basel, Switzerland. Actelion's first drug Tracleer®, an orally available dual endothelin receptor antagonist, has been approved as a therapy for pulmonary arterial hypertension. Actelion markets Tracleer® through its own subsidiaries in key markets worldwide, including the United States (based in South San Francisco), the European Union, Japan, Canada, Australia and Switzerland. Actelion, founded in late 1997, is a leading player in innovative science related to the endothelium - the single layer of cells separating every blood vessel from the blood stream. Actelion's over 2,400 employees focus on the discovery, development and marketing of innovative drugs for significant unmet medical needs. Actelion shares are traded on the SIX Swiss Exchange (ticker symbol: ATLN) as part of the Swiss blue-chip index SMI (Swiss Market Index SMI®).
For further information please contact:
Vice President, Head of Investor Relations & Public Affairs
Actelion Pharmaceuticals Ltd, Gewerbestrasse 16, CH-4123 Allschwil
+41 61 565 62 62
+1 650 624 69 36
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Actelion Pharmaceuticals Ltd
Gewerbestrasse 16 Allschwil Switzerland
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Source: Actelion Pharmaceuticals Ltd via Thomson Reuters ONE
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