Arbitration against Chugai commenced

Japanese drug major Chugai Pharmaceutical (TYO: 4519) today announced that an arbitration against Chugai has been commenced by the UK’s Medical Research Council and LifeArc (formerly, Medical Research Council Technology).

Arbitration is a private and confidential dispute resolution procedure, however the parties have agreed to this disclosure. Sums are sought from Chugai, which is majority-owned by Swiss pharma giant Roche (ROG: SIX), for alleged breach of obligations under a collaboration agreement dated August 15, 1990 in connection with the development of the humanized anti-human interleukin (IL)-6 receptor monoclonal antibody, Actemra (tocilizumab), for the treatment of rheumatoid arthritis. It is claimed that Chugai is obliged to pay royalties to the Claimants pursuant to the collaboration agreement.

Chugai says it considers that the claims are without merit and will vigorously defend itself in the arbitration. At this moment, no change is expected to the financial prospects of Chugai.