Onxeo Reports First Instance Decision from the Commercial Court of Paris in the Lawsuit against SpeBio/SpePharm
Paris (France), October 17, 2017 – 10 pm CEST – Onxeo S.A. (Euronext Paris, NASDAQ Copenhagen: ONXEO – FR0010095596), (“Onxeo” or the “Company”), a biotechnology company specializing in the development of innovative drugs in oncology, in particular against rare or resistant cancers, today announced the Commercial Court of Paris’ decision in the litigation which started in 2009 between Onxeo on one hand and, on the other hand, SpePharm and SpeBio B.V., 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) considered that SpePharm and SpeBio breached their contractual obligations. The various contractual breaches of these two companies resulted in a delay in the marketing and sales of Loramyc®, forcing Onxeo to terminate its partnership with these two companies in 2009 and initiate legal proceedings.
In first instance, the Court ordered Onxeo to pay SpeBio B.V. for costs incurred before termination the sum of €8.6 million with capitalized interest at the legal rate as of June 30, 2014 and to pay SpePharm the sum of €50,000 in damages, as well as €250,000 and €15,000 procedural indemnities to SpeBio and SpePharm respectively.
Given the 50% ownership of SpeBio B.V. by Onxeo and the financial liabilities between both companies, the net financial impact to Onxeo will have to be recalculated.
Onxeo vigorously contests the grounds for this decision and intends to explore all avenues of remedies, including the appeal of this decision.