Kolon Life Science May Have to Pay 43 Bil. Won in Damages to Japanese Pharma

Kolon Life Science may have to pay about 43 billion won in damages to Mitsubishi Tanabe, a Japanese pharmaceutical company, depending on the outcome of mediation by the International Chamber of Commerce (ICC), the company said in a public disclosure on Jan. 12.

In detail, Kolon Life Science will have to return a down payment of 2.5 billion yen (about 26.4 billion won) for a technology export contract and pay 6 percent of interest on the money which accrued from Dec. 22, 2016 to the payment date. Moreover, the company may have to pay 133.76 million yen (about 1.4 billion won) in damages and 5 percent interest on the amount for the period from April 28, 2018 to the payment date. It will be additionally responsible for the payment of about US$7.9 million (about 8.7 billion won) in legal fees.

Previously, Mitsubishi Tanabe filed a lawsuit against Kolon Life Science for the refund of the down payment after notifying the Korean company of the cancellation of a deal to license in Invossa K Inj., a gene therapy for osteoarthritis.