Settlement Sealed: Panacea Biotec, Apotex Resolve Arbitration With Conditional $2.5 Million Payout

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Panacea Biotec Ltd has finalized a dispute settlement agreement with Canadian pharmaceutical firm Apotex Inc., concluding a long-standing arbitration over a 2014 collaboration pact. As part of the resolution, Apotex will pay Panacea a total of USD 2.5 million, contingent upon USFDA approval of the product in question. Of this, Panacea’s subsidiary is expected to receive a net amount of USD 2 million, as confirmed in the latest regulatory disclosure.

Key Highlights From the Settlement

- The dispute stemmed from a 2014 agreement for research, development, licensing, and supply of pharmaceutical products
- Apotex had initially sought USD 118.14 million in damages, alleging delays in USFDA approvals by Panacea
- Panacea denied the allegations and filed a counterclaim for recovery of dues under the same agreement
- The settlement avoids further arbitration proceedings at the International Court of Arbitration, Paris
- Apotex will pay USD 2.5 million within 30 days of receiving USFDA approval for the product
- Panacea’s subsidiary will receive a net settlement amount of USD 2 million
- Both parties have agreed to withdraw all legal actions and waive future claims

Strategic Context and Implications

- The resolution allows Panacea to focus on its core vaccine and biosimilar pipeline without legal distractions
- The conditional nature of the payout ties financial recovery to regulatory success, aligning incentives for both parties
- The settlement will not materially impact Panacea’s financials in the current quarter but may contribute to future income upon approval

Outlook

With the dispute now resolved and the payout linked to regulatory milestones, Panacea Biotec is expected to redirect its focus toward global biosimilar launches and vaccine partnerships, including its recent deal with Zentiva for Certolizumab Pegol.

Sources: Business Standard, Economic Times Markets, Panacea Biotec Ltd regulatory filings, Reuters India Business Feed, JusMundi Arbitration Tracker, Moneycontrol, Times of India, CNBC-TV18