Panacea Biotec, Apotex settle dispute over breach of collaboration agreement
Ltd on Wednesday said it has settled disputes forming part of an arbitration with
Apotex Inc
, with its arm Panacea Biotec Pharma set to receive a net amount of USD 2 million.
The parties have executed a settlement agreement on July 9, 2025, recording full and final settlement of the disputes forming part of ICC arbitration initiated by Apotex Inc., Canada against the company and its wholly owned subsidiary, Panacea Biotec Pharma Ltd (PBPL) and another ICC Arbitration initiated by PBPL against Apotex, Panacea Biotec said in a regulatory filing.
"Pursuant to this settlement, PBPL shall receive a net amount of USD 2 million from Apotex," Panacea Biotec said in a regulatory filing, adding that it would enhance profitability and funds availability in PBPL and the company as a group.
In October 2023, Canada-based Apotex Inc filed arbitration proceedings at the International Court of Arbitration, Paris, seeking USD 118.14 million from the Indian firm, claiming breach of a
collaboration agreement
inked in 2014.
Elaborating on the structure of the settlement, Panacea Biotec said Apotex will pay USD 2.5 million within 30 days from the date of settlement agreement, and it will also pay USD 2.5 million upon receipt of final USFDA approval of the ANDA that is the subject of the collaboration agreement for
Paclitaxel protein-bound particles
for injectable suspension.
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As a result, the previous agreement for Apotex to pay USD 1 million upon receipt of the ANDA stands modified accordingly, it added.
The profit share for the supply by PBPL of Paclitaxel for Canada will be modified in a way that Apotex will receive 65 per cent of the net profits and PBPL shall receive balance 35 per cent until such time that Apotex recoups USD 1.5 million from that supply, after which the profit share shall revert to 50:50, the filing added.
Further, Panacea said, "The profit share for the supply by PBPL of Paclitaxel for USA will be modified in a way that Apotex shall receive 60 per cent of the net profits and PBPL shall receive balance 40 per cent until such time that Apotex recoups USD 0.5 million from that supply, after which the profit share shall revert to 50:50."
The parties will request the Arbitral Tribunal to terminate the arbitrations by entering an award by consent, recording the terms of the settlement agreement, it added.
Reiterating that the settlement is "full and final", the company said, "The full and final release and discharge shall apply even in the event that the Panacea Biotec ANDA is not approved at all whensoever by the USFDA."
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