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Arbitrating Pharma Disputes On The Rise – Planning Ahead Makes Sense

22 January 2018 | London
Legal Briefings – By Chris Parker and Lizzie Reeves

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PHARMACEUTICAL COMPANIES RISK coming up against complex and high value disputes in their everyday dealings and operations, and arbitration is increasingly being used to resolve these disputes. Lawyers Chris Parker and Elizabeth Reeves discuss the kinds of disputes pharmaceutical companies face, why international arbitration is well-suited to resolving such disputes, and what companies can do to plan ahead.

Leaving typical intellectual property disputes to one side, pharmaceutical disputes do not necessarily fit within the same bucket. However, they commonly arise out of contractual relationships, whether “one-off,” such as acquisitions, or ongoing, such as collaborations for drug development or co-promotion agreements.

As in other sectors, mergers and acquisitions can give rise to a variety of disputes, relating, for example, to inherited liabilities and warranty claims.

Pharmaceutical companies also enter into a vast range of ongoing commercial arrangements, including R&D agreements, licenses, co-promotion contracts and supply or distribution agreements. While most of these contracts will be performed amicably, they can be ripe for dispute if the parties’ commercial interests fall out of alignment.

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This article was first published in Scrip Pharma Intelligence, January 2018

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