SpePharm announces a claim in excess of 35 million Euros against BioAlliance Pharma for breaking up their Joint-Venture SpeBio

16-Apr-2009 - Netherlands

SpePharm Holding BV announced it intends to file a claim for financial damages and losses of not less than Thirty Five Million Euros against BioAlliance Pharma SA.

On February 27th, 2009, less than 9 months after the first commercial launch of Loramyc®, BioAlliance has unilaterally, and in the opinion of SpePharm, wrongfully terminated the license agreement signed in 2007 with SpeBio BV, its Joint-Venture with SpePharm, established for the commercialization of Loramyc® in Europe (excluding France). Furthermore, SpePharm will assert that BioAlliance has breached its obligations to the SpeBio shareholders agreement.

SpePharm maintains that BioAlliance has totally unrealistic commercial expectations for Loramyc® in Europe and has requested from SpeBio excessive and wasteful promotional investments which would have denied any possible return on investment for the Joint Venture. In spite of Spepharm management’s repeated requests to BioAlliance to discuss the reality of the market and the true potential of Loramyc®, this issue was never discussed with nor submitted to the Board of the Joint-Venture, according to SpePharm.

The termination of the license agreement has resulted in an immediate halt of the promotion of the product to doctors in the countries where SpePharm was actively promoting Loramyc® on behalf of SpeBio, following the successful granting of pricing and reimbursement (UK, Germany, Denmark, and Sweden). SpePharm asserts that the unilateral actions and breaches of contract committed by BioAlliance are delaying access to the product to existing and potential cancer patients, damaging the future of Loramyc® in these countries and causing damage to the relationship and reputation of SpePharm with hospital specialists and authorities throughout Europe.

SpePharm estimates that, based on even conservative forecasts of European product revenues, the damages to SpePharm will exceed €35Million.

https://www.bionity.com/en/news/99730/spepharm-announces-a-claim-in-excess-of-35-million-euros-against-bioalliance-pharma-for-breaking-up-their-joint-venture-spebio.html