Onxeo Reports Decision from the Paris Court of Appeal in the Lawsuit against SpeBio/SpePharm
Paris (France), December 13, 2018 – 7 pm CET - Onxeo S.A. (Euronext Paris, NASDAQ Copenhagen: ONXEO), a clinical-stage biotechnology company specializing in the development of innovative drugs in oncology targeting tumor DNA Damage Response (DDR) to fight resistant cancers, reports the Decision rendered by the Court of Appeal of Paris in the litigation which started in 2009 between Onxeo on the one hand and SpePharm and SpeBio B.V. on the other hand. SpeBio B.V. is a joint-venture subsidiary managed by SpePharm, which was dedicated to the distribution of Loramyc® in Europe.
As a reminder, Onxeo (formerly known as BioAlliance Pharma) notably considered that SpePharm and SpeBio had breached several contractual obligations which had resulted in a delay of Loramyc®’s marketing and sale, forcing Onxeo to terminate its partnership with these two companies in 2009 and to initiate legal proceedings.
The Paris Court of Appeal confirmed the first instance decision of the Paris Commercial Court of 17 October 2017 and ordered Onxeo to pay SpeBio B.V. the additional sum of approximately EUR 2.75 million as compensation for the damage resulting from costs incurred and loss of opportunity. On the other hand, the Court annulled the condemnation of EUR 50,000 that Onxeo had to pay to SpePharm as damages. Onxeo holds 50% of SpeBio B.V. and should be able to retrieve half of the financial assets in the joint-venture, which should amount to approximately EUR 5 million.
Onxeo is reviewing all possible avenues of remedies and negotiation. The net financial impact of this decision for Onxeo will have to be recalculated upon completion of this review.
Loramyc® (also known as Oravig® in the US and China, and Oravi® in Japan) is a mucoadhesive buccal tablet (Lauriad® technology) containing miconazole, intended for the treatment of oropharyngeal candidiasis in patients with head and neck cancer or AIDS. The product was sold to Vectans Pharma in July 2017.