The Firm’s client, Wellstat Therapeutics, has been awarded an estimated $70 million against BTG International, Inc. in a pharmaceutical contract dispute in the Delaware Court of Chancery. Vice Chancellor J. Travis Laster issued a Memorandum Opinion, awarding Wellstat $55.8 million in damages plus prejudgment interest estimated to be in excess of $15 million plus attorney’s fees.
In the lawsuit, Wellstat sued BTG over the marketing of Vistogard®, a life-saving drug designed to serve as an antidote for over-exposure to certain types of chemotherapy which Wellstat developed and obtained FDA approval for. Wellstat signed a distribution agreement with BTG that obligated BTG to commercialize and market the drug over a 10-year period. Under the Distribution Agreement, BTG was supposed to use its “diligent efforts.”
The FDA approved Vistogard® in December 2015. In the months preceding approval, the parties began to dispute the level of effort BTG planned to devote to the product. Seven months later, in July 2016, BTG sued Wellstat claiming that BTG had complied with the contract. Wellstat filed a counterclaim seeking to terminate the distribution rights and to recover damages.
Vice Chancellor Laster ruled in favor of Wellstat, finding that BTG had breached the agreement in various ways. Further, he found no validity to BTG’s claims. Vice Chancellor Laster awarded Wellstat actual damages of $55.8 million plus prejudgment interest accruing at 1% per month compounded, running from September 2015. In addition, Vice Chancellor Laster awarded Wellstat an unspecified amount of attorneys’ fees due to BTG’s conduct during the litigation.
Wellstat is represented in the case by a team of lawyers from Susman Godfrey, Richards, Layton & Finger, and Schulman Bhattacharya.
BTG International, Inc. is a wholly-owned subsidiary of BTG PLC, a publicly traded pharmaceutical company based in the United Kingdom.
The case is Wellstat Therapeutics v. BTG International in The Delaware Court of Chancery, C.A. No. 12562-VCL.