Acerus Pharmaceuticals Corporation (the "Company" or "Acerus") (TSX:ASP, OTCQB: ASPF) today announced that it has commenced litigation against Recipharm Limited ("Recipharm"), a wholly-owned subsidiary of Recipharm AB (RECI-B.ST), in the Commercial Court of London. Acerus alleges that the suspension of Recipharm’s manufacturing license in August 2018, in contravention of its contractual obligations to Acerus, led to a shortage of Estrace® in Canada. In 2018, Estrace® generated sales revenues of USD$4.2M. However, due to the shortage, Estrace® revenues and Acerus’ market share have decreased substantially each year since the shortage began. Consequently, Acerus has sued Recipharm for, among other things, its loss of profits and loss of market share caused by the shortage.
"Unfortunately, Recipharm’s manufacturing license remains suspended and Recipharm has refused to undertake any remedial works at its production site or compensate Acerus for the losses it has suffered", said Ed Gudaitis, President and CEO of Acerus. "Patients depend on having a reliable supply of their medicines. Manufacturers in the pharmaceutical industry need to be able to rely on the contracts they enter into with contract manufacturing organizations such as Recipharm. Unfortunately, Recipharm’s inability to cure its contractual breaches and its unwillingness to provide redress has forced Acerus to instruct Hogan Lovells International LLP to commence proceedings and enforce its rights in the U.K. courts".
Acerus Pharmaceuticals Corporation is a Canadian-based specialty pharmaceutical company focused on the commercialization and development of innovative prescription products that improve patient experience, with a primary focus in the field of men’s health. The Company commercializes its products via its own salesforce in the United States and Canada, and through a global network of licensed distributors in other territories.
Notice Regarding Forward-Looking Statements
Information in this press release that is not current or historical factual information may constitute forward looking information within the meaning of securities laws. Implicit in this information are assumptions regarding our future operational results. These assumptions, although considered reasonable by the Company at the time of preparation, may prove to be incorrect. Readers are cautioned that actual performance of the Company is subject to a number of risks and uncertainties, including with respect to the potential success of the litigation proceedings against Recipharm, and could differ materially from what is currently expected as set out above. In particular, these assumptions include but are not limited to, the following: the COVID-19 pandemic will not affect our business plan and that of our suppliers, the COVID-19 pandemic will not last many months and health care professionals will be available to hear about our products and to continue education programs related to them. For more exhaustive information on these risks and uncertainties you should refer to our annual information form dated March 3, 2020 which is available at www.sedar.com. Forward-looking information contained in this press release is based on our current estimates, expectations and projections, which we believe are reasonable as of the current date. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While we may elect to, we are under no obligation and do not undertake to update this information at any particular time, whether as a result of new information, future events or otherwise, except as required by applicable securities law.
President and Chief Executive Officer