Allist Pharmaceuticals Co., Ltd, a Shanghai-based biopharmaceutical company, has announced that it has received a notice of the initiation of arbitration from the Shanghai International Economic and Trade Arbitration Commission. The applicant in this matter is Shanghai Fosun Pharmaceutical Group Co., Ltd (SHA.600196; HKEX.02196), which is seeking the cancellation of a promotion agreement related to Allist’s furmonertinib and is requesting compensation amounting to RMB 255 million (USD 35 million).
Furmonertinib, an in-house discovery by Allist, is an irreversible, selective, third-generation EGFR tyrosine-kinase inhibitor. It is exclusively promoted by Allist in the broad market region, covering more than 1,500 hospitals in China, as per the agreement signed with Fosun in April 2022. Allist maintained the promotion responsibilities for the Category 1 drug, indicated for the treatment of advanced non-small cell lung cancer, in the core market area, comprising approximately 1,000 hospitals.
In November 2023, Allist issued a Notice of Termination of Exclusive Promotion Agreement to Fosun, citing multiple breaches of the agreement that hindered the realization of the agreed objectives. Upon being notified of the cancellation on January 1, 2024, Fosun filed for arbitration due to disagreements over the contract’s performance and termination clauses.- Flcube.com
