Paul Hastings secured a complete victory ($0 liability) on behalf of Mitsubishi Tanabe (Japan) in an international arbitration against Novartis Pharma AG (Switzerland) before the International Court of Arbitration of the International Chamber of Commerce (ICC) and seated in London.  The tribunal was comprised of three of the world’s leading arbitrators (Dr. Gabrielle Kaufmann-Kohler, chair, Dr. Michael Moser, and Lord David Neuberger).  The dispute concerned the legality and enforceability of royalty payments, pursuant to a licensing agreement, concerning the drug product, Gilenya®, which is a blockbuster drug with over USD3 billion in sales annually.

This matter was particularly significant because (1) it involved critical “systemic” global issues of first impression regarding public policy and conflict of laws issues with respect to intellectual property and competition law of the United States, European Union and Japan in the pharmaceutical industry, and (2) the large amount in controversy (in excess of US$1.6 billion in affirmative claims and more than US$3.2 billion when including all counterclaims) and bet-the-company size of the dispute for Mitsubishi Tanabe.

Partners Eric Dittmann and Joseph Profaizer led the team, which also included partners Chad Peterman, Steve Kinnaird, Young Park, Joshua Bennett, of counsel Adam Weiss, associate Sachiko Taniguchi. More information can be found here: Japanese pharma group declares win in billion-dollar royalties dispute - Global Arbitration Review