Panacea Biotec, Apotex resolve dispute over breach of collaboration agreement

Written By : Ruchika Sharma |Medically Reviewed By : Dr. Kamal Kant Kohli Published On 2025-07-12T16:40:26+05:30 | Updated On 12 July 2025 4:40 PM IST

Panacea Biotec announces listing of EmulsiPan adjuvant in CEPI Adjuvant Library

Panacea Biotec Limited has announced the settlement of the disputes forming part of the arbitration among Apotex Inc., the Company and its wholly-owned subsidiary, Panacea Biotec Pharma Limited.

"The parties have executed a Settlement Agreement on July 09, 2025, recording full and final settlement of the disputes forming part of ICC arbitration No. 28118/CPB (initiated by Apotex Inc., Canada against the Company and its wholly owned subsidiary, Panacea Biotec Pharma Limited (“PBPL”)) and ICC Arbitration No. 28560 initiated by PBPL against Apotex," Panacea stated in a BSE filing.

Pursuant to this settlement, PBPL shall receive a net amount of US$ 2.0 million from Apotex, which will enhance profitability and funds availability in PBPL and the Company as a group.

The Company had earlier notified that it had received a notification dated October 04, 2023 from the International Court of Arbitration, Paris (“ICC”) intimating that an Arbitration proceeding has commenced with respect to the Request for Arbitration filed by Apotex Inc., an entity based out in Canada for arbitration of dispute between the parties

Pursuant to the settlement, it has, inter-alia, been agreed among the Parties that 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 (Albumin-Bound) (“Paclitaxel”).

As a result, the previous agreement for Apotex to pay USD 1.0 million upon receipt of the ANDA stands modified accordingly.

The profit share for the supply by PBPL of Paclitaxel for Canada will be modified in a way that Apotex shall receive 65% of the Net Profits and PBPL shall receive balance 35% until such time that Apotex recoups USD 1.5 million from that supply, after which the profit share shall revert to 50:50, Panacea stated.

The profit share for the supply by PBPL of Paclitaxel for USA will be modified in a way that Apotex shall receive 60% of the Net Profits and PBPL shall receive balance 40% 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 shall request Arbitral Tribunal to terminate the aforesaid arbitrations by entering an award by consent recording the terms of this Settlement Agreement.

"This Settlement Agreement is in full and final settlement of all and/or any actions, claims, rights, demands and set offs, arising out of or connected with the above referred disputes and the underlying facts relating to the disputes among the Parties; and 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 US FDA," the BSE filing stated.

panacea biotecpanacea biotec newsapotex

Ruchika Sharma

Ruchika Sharma joined Medical Dialogue as an Correspondent for the Business Section in 2019. She covers all the updates in the Pharmaceutical field, Policy, Insurance, Business Healthcare, Medical News, Health News, Pharma News, Healthcare and Investment. She has completed her B.Com from Delhi University and then pursued postgraduation in M.Com. She can be contacted at editorial@medicaldialogues.in Contact no. 011-43720751

Dr. Kamal Kant Kohli

Dr Kamal Kant Kohli-MBBS, DTCD- a chest specialist with more than 30 years of practice and a flair for writing clinical articles, Dr Kamal Kant Kohli joined Medical Dialogues as a Chief Editor of Medical News. Besides writing articles, as an editor, he proofreads and verifies all the medical content published on Medical Dialogues including those coming from journals, studies,medical conferences,guidelines etc. Email: drkohli@medicaldialogues.in. Contact no. 011-43720751