Negative outcome in arbitration with Asahi will cost Actelion $91 million; and bad news emerges with insomnia drug

Swiss biotoechnology firm Actelion has received a negative ruling in its arbitration proceeding in California, USA, between one of its subsidiaries, CoTherix, and Japan's Asahi Kasei Pharma regarding a license agreement to develop the latter's rho kinase inhibitor, fasudil.

The arbitration panel has now reached a decision that CoTherix should pay Asahi Kasei approximately $91 million (plus interest). The law suit remains ongoing. Accordingly, taking into consideration prior provisions, the company expects 2009 operating profit to be reduced by around $80 million.

Actelion said it is surprised and disappointed by both the panel's decision as well as by the amount awarded. Its subsidiary CoTherix is currently reviewing the decision to evaluate possible judicial review.