In an arbitration involving AOP Orphan Pharmaceuticals AG (AOP), an Austrian pharmaceutical company specializing in the treatment of rare diseases, and the Taiwanese biopharmaceutical company PharmaEssentia Corporation, NERA supported the claimant’s counsel, Schönherr, by providing economic analysis, damages quantification, and expert testimony.

The dispute arose over the development and commercialization of a new orphan drug called BESREMi, which began development in 2009. Although AOP completed the clinical and regulatory development of BESREMi in the European Union, PharmaEssentia attempted to terminate the agreement in 2017. AOP did not accept the termination and initiated arbitration proceedings against PharmaEssentia, claiming damages for delayed commercialization due to PharmaEssentia’s uncooperative behavior.

As part of Schönherr’s case, a NERA team led by Senior Managing Director Yves Hervé was engaged to provide economic analysis and calculate the quantum of damages. Dr. Hervé testified as an expert witness before an arbitration tribunal held under the auspices of the International Chamber of Commerce (ICC).

On 20 October 2020, after two and a half years of arbitration proceedings, the tribunal ruled in favor of AOP, awarding approximately €143 million in damages. The damages calculation was based on NERA’s economic modeling.