Actelion Reports Arbitration Results Between CoTherix, Asahi Kasei Pharma

Actelion has reported the results of an arbitration proceeding in California between one of its subsidiaries, CoTherix, and Asahi Kasei Pharma (Japan), regarding a license agreement to develop Asahi Kasei’s rho kinase inhibitor, fasudil.

CoTherix and Asahi Kasei entered into a license agreement relating to fasudil in June 2006. On 9 January 2007, Actelion US Holding Company, a subsidiary of Actelion, acquired 100% of the issued and outstanding shares of the common stock of CoTherix. CoTherix has continued to exist as a separate, but wholly-owned subsidiary, and thus, the results of CoTherix’ operations have been included in the consolidated financial statements of Actelion since that date.

On 9 January 2007, Asahi was advised that CoTherix would not continue development of fasudil, and thereafter returned fasudil to Asahi Kasei. Asahi Kasei disputed the basis for terminating development of fasudil and initiated the arbitration proceeding against CoTherix in October 2007. Asahi Kasei also filed a lawsuit against Actelion and certain subsidiaries in 2008 in California state court.

The arbitration panel has now reached a decision that CoTherix should pay Asahi Kasei approximately $91m. Actelion has expressed its surprise and disappointment by both the panel’s decision as well as by the amount awarded. Its subsidiary, CoTherix is currently reviewing the decision to evaluate possible judicial review.