Breach of Contract Litigation Involving a Biopharmaceutical Innovation
Analysis Group was retained by Quinn Emanuel Urquhart & Sullivan on behalf of Shareholder Representative Services (SRS), the plaintiff designated by former stockholders of Syntimmune, in a breach of contract litigation brought against two major pharmaceutical companies. SRS claimed that the defendants breached their 2018 merger agreement with Syntimmune by failing to make commercially reasonable efforts to develop a monoclonal antibody treatment for autoimmune diseases. SRS also alleged that the defendants refused to make a $130 million milestone payment following that treatment’s successful completion of a Phase 1 clinical study.
An Analysis Group team led by Managing Principal Jee-Yeon Lehmann, Principal Brian Ellman, Vice Presidents Federico Mantovanelli and Philipp Tillmann, Manager Olivia Althans, and Consultant Liz Neyens supported four affiliated experts, all of whom filed reports and testified at deposition and trial.
- Denis Boyle opined on topics related to the chemistry, manufacturing, and controls (CMC) processes for biologic drugs.
- Michael S. Kinch opined on the likelihood of clinical trial success and regulatory approvals.
- Mark S. Robbins opined on biopharmaceutical regulatory approaches, clinical development, and reasonableness of development timelines.
- John Russell opined on the competitive landscape, commercial potential, pricing, and reimbursement in the biopharmaceutical industry.
Referencing the testimony of Professor Kinch, Dr. Robbins, and Mr. Russell in her opinion, a Delaware Court of Chancery judge agreed with SRS’s argument that the defendants breached the merger agreement’s requirements and awarded $130 million to SRS as compensation for the missing milestone payment. The Court also found that the defendants breached a contractual requirement to exercise “commercially reasonable efforts” to develop and bring the drug to market and indicated that it would issue a future opinion on damages associated with the defendants’ early termination of the program.