After a dispute over milestone payments disrupted a 2019 collaboration on heart medication, Daiichi Sankyo and Esperion Therapeutics have reconciled their differences with a $125 million settlement.
Settlement Terms
Esperion filed a lawsuit in March 2023 for breach of contract over missed payments, but the case was resolved in less than a year. The settlement resolves Esperion's lawsuit and paves the way for a new partnership between the two companies.
Both parties emphasized this amicable resolution, which will subsequently dismiss Esperion's March filing of pending U.S. litigation.
Dispute Arises Tied To Milestone Payment
The business dispute arose from a 2019 agreement granting Daiichi exclusive commercialization rights to Esperion's bempedoic acid in Europe, which included milestone payments tied to specific outcomes, including label expansions and cardiovascular risk reduction.
A key point of contention was a $300 million milestone payment linked to a trial evaluating the medication's efficacy. Esperion believed it was entitled to the payment, leading to disagreements over the interpretation of trial endpoints.
So What?
The resolution between Daiichi Sankyo and Esperion Therapeutics demonstrates a happy ending to litigation. Litigation can be a means to a happy ending. Although many people think of litigation as the end of a relationship, litigation can lead to a resolution that moves all parties forward as partners together and stronger than they were before the case was filed. Some lawyers are skilled at getting the parties to reach a resolution that they can’t reach on their own, either because one side has lost sight of the bigger picture or perhaps the parties don’t get along. At King & Jones, we understand the importance of effective conflict resolution and stand ready to support businesses navigating complex negotiations and achieving mutually beneficial outcomes.