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Actelion Ltd.. (6/29/11). "Press Release: Actelion Provides an Update on the Award Provision in Regard to Asahi Litigation". Allschwil.

Organisations Organisation CoTherix Inc. (Nasdaq: CTRX)
  Group Johnson & Johnson (JnJ) (Group)
  Organisation 2 Asahi Kasei Pharma Corporation
  Group Asahi Kasei Corporation (Group)
Product Product Fasudil
Person Person Haefeli, Roland (Actelion 201105 VP Head Investor Relations + Public Affairs)
     


Actelion (SIX: ATLN) today announced that in the absence of a judgment in regard to Asahi Kasei Pharma Corp. v. Actelion Ltd. et al. (case number CIV 478533, Superior Court of the State of California, County of San Mateo), the company will make a provision for the full award announced on 04 May 2011.

A judgment was not entered by the trial court on 28 June 2011. As a result and unless the company receives additional information prior to reporting the half year results, Actelion will record a provision of USD 577 million (approx CHF 485 million) in the second quarter financial statements. This provision follows the jury verdict in which Asahi was awarded up to USD 577 million in compensatory and punitive damages.

The company and its external advisors believe that the verdict is neither supported by the facts nor is it correct as a matter of law. The company is therefore confident that there are significant grounds for a successful appeal, which will be filed in due course.

The provision reflecting the judgment award as entered will be adjusted in the third quarter financial statements. Should the judgment award remain at USD 577 million - the provision for this amount is very likely to result in the company recording a US GAAP operating loss for 2011.

Charges related to the judgment will not be included in Non-GAAP EBIT, and therefore do not affect our guidance for the year, which is expressed in local currencies. Due to the continued strength of the Swiss Franc, Non-GAAP EBIT, as expressed in our reporting currency - at current exchange rates - is expected to be lower for the full year 2011 as compared to 2010. The company will provide further updates with its Half Year reporting.

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Notes to the Editor

About the complaint

On November 19, 2008, plaintiff Asahi Kasei Pharma Corporation ("Asahi") filed a complaint at the State Court in California, US, against Actelion Ltd and its subsidiaries Actelion Pharmaceuticals US Inc., Actelion Pharmaceuticals Ltd, Actelion US Holding Company, CoTherix, Inc. ("CoTherix") and three individual officers. The action arises from a dispute involving the license and development agreement between Asahi and CoTherix for the drug compound fasudil that has been terminated upon the acquisition of CoTherix in 2007.

About the jury verdict

On 04 May 2011 a jury awarded Asahi Kasei Pharma ("Asahi") up to USD 547 million in compensatory damages. In addition, the jury awarded punitive damages of USD 30 million against certain individual officers of the company.

About the post-trial motion

In a post-trial motion Actelion requested an election between damages of USD 358.95 million for alleged lost profits or USD 187.4 million in alleged development costs.

In addition, from either amount the motion requested the deduction (off-set) of USD 78.4 million from a previous payment related to arbitration proceedings in 2009.


Actelion Ltd.

Actelion Ltd is a biopharmaceutical company with its corporate headquarters in Allschwil/Basel, Switzerland. Actelion's first drug Tracleer®, an orally available dual endothelin receptor antagonist, has been approved as a therapy for pulmonary arterial hypertension. Actelion markets Tracleer® through its own subsidiaries in key markets worldwide, including the United States (based in South San Francisco), the European Union, Japan, Canada, Australia and Switzerland. Actelion, founded in late 1997, is a leading player in innovative science related to the endothelium - the single layer of cells separating every blood vessel from the blood stream. Actelion's over 2,400 employees focus on the discovery, development and marketing of innovative drugs for significant unmet medical needs. Actelion shares are traded on the SIX Swiss Exchange (ticker symbol: ATLN) as part of the Swiss blue-chip index SMI (Swiss Market Index SMI®).


For further information please contact:

Roland Haefeli
Vice President, Head of Investor Relations & Public Affairs
Actelion Pharmaceuticals Ltd, Gewerbestrasse 16, CH-4123 Allschwil
+41 61 565 62 62
+1 650 624 69 36
www.actelion.com

   
Record changed: 2019-06-09

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