Actelion profits to take US$80m hit after fasudil ruling
Swiss biopharmaceutical firm Actelion is forecasting a US$80m hit to its 2009 operating profit after an arbitration panel ruled against its subsidiary CoTherix in a dispute with pharmaceutical firm Asahi Kasei Pharma regarding a licence to develop the Japanese firm\'s rho kinase inhibitor, fasudil.
Swiss biopharmaceutical firm Actelion is forecasting a US$80m hit to its 2009 operating profit after an arbitration panel ruled against its subsidiary CoTherix in a dispute with pharmaceutical firm Asahi Kasei Pharma regarding a licence to develop the Japanese firm's rho kinase inhibitor, fasudil.
The arbitration panel in California has ruled that CoTherix should pay Asahi Kasei approximately US$91m and the lawsuit remains ongoing.
Actelion said it was "surprised and disappointed" by both the panel's decision and the amount awarded. Its subsidiary CoTherix is currently reviewing the decision to evaluate possible judicial review.
CoTherix and Asahi Kasei entered into the fasudil agreement in June 2006. On 9 January 2007, Actelion US Holding Company, a subsidiary of Actelion, acquired CoTherix, which has continued to exist as a separate, but wholly owned subsidiary, and thus the results of CoTherix' operations have been included in the financial statements of Actelion since that date.
On 9 January 2007, CoTherix advised Asahi that it would not continue development of fasudil. The Japanese group disputed the basis for CoTherix terminating the development agreement and initiated proceedings against CoTherix in October 2007. Asahi Kasei also filed a lawsuit against Actelion and subsidiaries in 2008 in the California state court.
