Adocia prevails in biopharma license agreement dispute in international arbitration
Clients Adocia S.A.
Jones Day won a binding arbitration award for French biopharmaceutical company, Adocia S.A., in a license agreement dispute against Eli Lilly and Company. Adocia and Lilly had entered a collaboration and license agreement to co-develop an ultra-rapid insulin treatment for diabetics. Lilly refused to pay contract benefits to Adocia by claiming that an instability in the developmental product exempted it from future payment obligations.
The Jones Day team presented scientific evidence demonstrating that Adocia met the requirements for an $11.6 million contractual milestone that Lilly refused to pay. In a 32 page decision, the unanimous three arbitrator panel ruled that Adocia established that Lilly breached the parties' license agreement. Jones Day proved Lilly's breach through meticulous presentation of scientific evidence integrated into a cohesive legal argument based upon the plain language of the parties' agreement.
In a subsequent dispute over prejudgment interest, the same three arbitrator panel unanimously awarded Adocia interest on the award at nine percent per annum dating back to the date of Lilly's breach, bringing the value of the award to over $13.2 million.
Adocia S.A. v. Eli Lilly and Company, No. 01-17-005-2264 (AAA)