May 31 2011
SpePharm Holding B.V. announces that the appeals lodged by BioAlliance Pharma S.A. - a French company listed on Paris Euronext - before the Paris Court of Appeals have been rejected.
On February 27th 2009 BioAlliance unilaterally and, in the opinion of SpePharm, wrongfully terminated the license agreement and the supply agreement both signed on 31 May 2007 with SpeBio B.V., a joint venture established between BioAlliance and SpePharm for the commercialization of Loramyc® in Europe (excluding France). SpePharm has filed counterclaims in excess of € 35 million against BioAlliance for wrongful termination and breaking up the joint venture, SpeBio.
In two decisions issued on May 5th, 2011, the Paris Court of Appeals upholds earlier decisions rendered in first instance, including an arbitral award rendered on April 8, 2010 by an Arbitral Tribunal of the International Chamber of Commerce (ICC) and an order of enforcement of such award rendered on May 17, 2010 by the President of the Tribunal de Grande Instance of Paris. On April 8, 2010, the ICC Arbitral Tribunal ordered, that, in the preliminary stage of the proceedings regarding jurisdiction issues, BioAlliance should reimburse € 334,000 of legal costs (plus interest) as a first payment to SpePharm and SpeBio. By dismissing the review action filed by BioAlliance against the award, the Court of Appeals now confirms that the ICC arbitral award is enforceable. In addition, the Court of Appeals ruled that BioAlliance must reimburse an additional € 160,000 of legal costs to SpePharm and SpeBio.
Commenting on the decision by the Paris Court of Appeals, Jean-Francois Labbé, Managing Director of SpePharm Holding B.V., stated that "these judgments are in line with our expectations. However it is sad to note that a company such as BioAlliance persists in its earlier approach of what appears to be a clear misbehavior that harms its partners. The judgments of the Court of Appeals make it clear to us that SpePharm has taken the right steps to defend its position and that of SpeBio, its joint venture with BioAlliance. We are confident regarding the further outcome of the remaining court cases."
The confirmation of earlier court decisions reinforces SpePharm's firm intention of asserting its rights in the ongoing litigation with BioAlliance over Loramyc® launch in Europe and over SpePharm's and SpeBio's damage claims.