Smooth move, DMX:
Dimethaid To Make Payments To Provalis Pursuant To Ruling
Dow Jones
TORONTO (Dow Jones)--Dimethaid International Inc. will pay Provalis Healthcare Ltd. a compensatory sum of about $2.1 million, together with costs and interest of about $632,000, following an arbitration ruling in Provalis Healthcare's favor.
A counterclaim by Dimethaid International against Provalis Healthcare was denied. The arbitrator's decision is final and binding.
In a press release, Dimethaid International's parent, Dimethaid Research Inc. (DMX.T), said its unit ended an agreement in June 2002 that gave Provalis Healthcare exclusive Pennsaid distribution rights in the U.K. Provalis Healthcare initiated arbitration proceedings in December 2002, challenging its right to terminate.
The arbitrator found that, although Provalis Healthcare had provided long-term sales projections well below the contract minimums and, at termination, had placed orders for only one-third of the first year's commitment, those facts weren't sufficient to establish that Provalis Healthcare had repudiated the contract.
Rebecca Keeler, president and chief executive of Dimethaid Research, said, " Naturally, we are disappointed with the decision and believe it does not appropriately reflect the business commitments made. But the matter is now concluded and we look forward to moving ahead with our new U.K. sales and marketing strategy."
Dimethaid International has since signed a sales development services agreement with a U.K. contract organization to recover marketing momentum lost after the initial product launch, the pharmaceutical company said.
Provalis Healthcare is a unit of Provalis Plc (PLVS). |
