Arbitral Tribunal favors Valeant in Uceris arbitration

Canadian drugmaker Valeant Pharmaceuticals International (TSX: VRX) has announced that the Arbitral Tribunal issued a decision (rendered on April 9, 2018) relating to the arbitration between Santarus and Valeant Pharmaceuticals Ireland (collectively "Valeant"), and Cosmo Technologies, the licensor of certain intellectual property rights in, and supplier of, Valeant's ulcerative colitis drug Uceris (budesonide).

The arbitration focused on Cosmo's allegations that Valeant had breached the license agreement and manufacturing and supply agreement between the parties and Cosmo's claim that it had validly terminated the Agreements. Valeant denied each of Cosmo's allegations and claims. A hearing on liability issues was conducted from October 5-8, 2017.

On April 12, 2018, the Tribunal issued a ruling rejecting Cosmo's claims in their entirety; accordingly, both the license agreement and the manufacturing and supply agreement remain in effect. Additionally, the Arbitral Tribunal ordered Cosmo to pay the entirety of Valeant's legal costs ($3,063,960).