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news.Valeant Pharmaceuticals has reached an agreement to resolve its long-standing dispute with the Health Fund of Serbia and the Republic of Serbia regarding their joint venture, Galenika.
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Under the agreement, Valeant collected $28 million of a total of $34 million agreed to be paid in settlement of the dispute. Valeant expects Serbia to pay the remaining $6 million in the first quarter of 2007.
The dispute began in 1999 when the Health Fund and the Republic of Serbia initiated an arbitration regarding the ownership and operation of the Galenika joint venture. In November 2004, the International Chamber of Commerce arbitral panel ruled that the Health Fund and the Republic of Serbia must return the initial investment contributed by Valeant to the joint venture.
“The fact that we reached an agreement and received payment from the Republic of Serbia reflects positively on both parties. Resolution of the matter is a tribute to the Serbian government, which has demonstrated to the international community that it can – and will – keep its word,” said Timothy Tyson, president and CEO of Valeant.