In an arbitration involving AOP Orphan Pharmaceuticals AG (“AOP”), an Austrian pharmaceutical company specializing in the treatment of rare diseases, against Taiwanese biopharmaceutical company PharmaEssentia Corporation, NERA Economic Consulting supported the claimant’s counsel Schönherr to provide economic analysis, damage quantification, and testimony.

The dispute arose over the development and commercialization of a new orphan drug called BESREMi®, which was developed starting in 2009. While AOP had completed the clinical and regulatory development of BESREMi® in the European Union, PharmaEssentia tried to terminate the agreement in 2017. AOP did not accept that termination and started arbitration proceedings against PharmaEssentia, claiming damages for late commercialization due to PharmaEssentia’s uncooperative behavior.

As part of the case led by Schönherr, NERA Managing Director Dr. Yves Hervé, supported by Consultants Dr. Georg Siegert and Fabian Peters, was hired to provide economic analysis, calculate the quantum of damages, and testify as an expert witness before an arbitration tribunal held under the auspices of the International Chamber of Commerce (ICC).

On Tuesday, 20 October 2020, after two and a half years of arbitration proceedings, the tribunal ruled in favor of Schönherr’s client AOP, which was awarded approximately 143 million euro in damages. The damage calculation was based on NERA’s economic modelling.