Yuheng pharmaceutical industry compensates US $9 million to terminate the insulin supply and marketing agreement

On January 13, Harbin Yuheng Pharmaceutical Co., Ltd announced that on January 10, it had signed an intentional termination agreement with biotons S.A and scigen PTE Ltd to terminate the supply and marketing agreement related to the exclusive sales rights of Protamine Insulin Injection, Protamine Insulin premixed injection and other products in China According to the intention to terminate the agreement, Yuheng pharmaceutical paid BIOTON US $9 million to settle all disputes arising from the supply and marketing agreement and related agreements between the parties The specific arrangement is that the company will first pay $3 million to BIOTON within 10 working days after the effective date of the intentional termination agreement, and will pay $6 million to BIOTON before February 16, 2020 After all the above payments are made, the parties agree that they will not be liable to each other for all contractual and other legal obligations arising from the supply and marketing agreement and its related agreements, and agree to terminate the above agreement In addition, BIOTON agrees to waive all actual or potential causes of action, claims, damages and demands of any nature arising out of the foregoing agreement On September 23, 2015, Yuheng pharmaceutical signed the supply and marketing agreement with BIOTON and scigen limited According to the agreement, Yuheng Pharmaceutical Co., Ltd obtains the exclusive sales right of RHI and its related products of BIOTON in China and the use right of "scilin trademark" BIOTON's RHI and related products include Protamine Insulin Injection, Protamine Insulin premixed injection, etc The supply and marketing agreement shall come into force on January 1, 2016 and shall be valid for 10 years According to the agreement, Yuheng Pharmaceutical Co., Ltd expects to pay at least USD 138 million in accumulated purchase funds in 2020-2025 For the reasons, the reasons given by Yuheng pharmaceutical industry in the announcement are very clear: in recent years, the reform of the national medical and health system has continued to deepen, and policies such as centralized procurement with volume, medical insurance and fee control reform have been fully implemented, which brings great challenges to pharmaceutical enterprises In view of changes in the objective environment such as national policies and market situation, the company judges that the market price and market pattern of insulin products will fluctuate greatly in the future, and the relevant sales data predicted by the company in the early stage will not be applicable If we continue to perform the supply and marketing agreement and related agreements, the company will bear a large loss Adorable adorable