Thompson Hine Wins $68 Million Award for Major Pharmaceuticals Company30 March 2006
On March 22, 2006, the United States Court of Appeals (Sixth Circuit) affirmed a $68 million arbitration award for Thompson Hine client, Solvay Pharmaceuticals, Inc. James D. Robenalt, chair of Thompson Hine's business litigation practice, argued the appeal for Solvay. Kenneth W. Starr, partner with the law firm of Kirkland & Ellis (and former Whitewater/Starr Report investigator), argued for the defendant, Duramed Pharmaceuticals, Inc.
BACKGROUND ... In October of 1999 Thompson Hine client, Solvay Pharmaceuticals, Inc. (Solvay) contracted with Duramed Pharmaceuticals, Inc. (Duramed) to co-promote and market a new drug for menopause named Cenestin. A second agreement was entered into in January of 2000, giving Solvay at least the first 10 years of profits on the drug. After only two years, Duramed terminated the relationship subsequent to their acquisition in a merger.
Solvay had invested over $100 million in national marketing of Cenestin but had only recovered approximately $47 million at the time of the termination. The case resulted in a month-long arbitration. Thompson Hine lawyers proved that termination of the agreement was improper and Solvay was awarded $68 million.
Duramed's counsel tried to vacate the award in district court to no avail. In 2004 a federal judge dismissed their motion and granted Solvay's motion to confirm the award. Duramed filed an appeal with the United States Court of Appeals for the Sixth Circuit. In October of 2005 Kenneth W. Starr appeared in the Sixth Circuit to argue on behalf of Duramed and James D. Robenalt of Thompson Hine argued for Solvay.
On March 22, 2006, the district court's decision was affirmed in an 11 page written opinion confirming a $68 million arbitration award against Duramed and in favor of Solvay.
About Thompson Hine LLP ... Established in 1911, Thompson Hine today is among the largest business law firms in the United States. For the last several years, the firm has been named one of the Best Corporate Law Firms in America (in an annual survey of 2,000 corporate directors conducted by Corporate Board Member magazine). With more than 370 lawyers, Thompson Hine serves premier businesses worldwide. The firm has offices in Atlanta, Brussels, Cincinnati, Cleveland, Columbus, Dayton, New York, and Washington, D.C. For more information, go to http://www.ThompsonHine.com.
About Solvay Pharmaceuticals, Inc. ... Solvay Pharmaceuticals, Inc. (http://www.solvaypharmaceuticals-us.com) of Marietta, Georgia (USA), is a research- driven pharmaceutical company that seeks to fulfill unmet medical needs in the therapeutic areas of cardiology, gastroenterology, mental health, women's health and a select group of specialized markets including men's health. It is a part of the global Solvay Pharmaceuticals organization whose core activities consist of discovering, developing and manufacturing medicines for human use. Solvay Pharmaceuticals is a subsidiary corporation of the worldwide Solvay Group of chemical and pharmaceutical companies headquartered in Brussels, Belgium.
Source: prnewswire
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