Hogan Lovells secures important victory for Acerus in litigation with Recipharm

The proceedings in this case first commenced in June 2020 when Acerus alleged that the suspension of Recipharm’s manufacturing license in August 2018 was in contravention of its contractual obligations to Acerus and led to a shortage of Estrace®, a drug used in the treatment of the menopause, in Canada.

In a judgment made public this week, Hogan Lovells’ client Acerus prevailed in the preliminary issue trial. In agreeing with Acerus that its claim for damages was not barred, the Commercial Court directed the matter to proceed to a full trial in the coming months. Recipharm has asked for permission to appeal the Court’s decision.

Alex Sciannaca, partner at Hogan Lovells, said: “This decision underlines the sensible and commercial approach that the English courts take towards contractual interpretation. It reminds contractual parties who seek to resist liability that they cannot take a position which defies business common sense.”

"This is an important step forward in Acerus’ effort to hold Recipharm accountable for its contractual breaches,” said Ed Gudaitis, President and Chief Executive Officer of Acerus. “Manufacturers in the pharmaceutical industry rely on contract manufacturing organizations like Recipharm to ensure that patients have access to the medicines they need. We are pleased with the court’s decision and are confident that the appeal process will resolve this issue in our favor."

The Hogan Lovells team representing Acerus includes Alex Sciannaca, partner, and Emma Houldsworth, senior associate, instructing Sarah Abram at Brick Court Chambers. The full judgment is available here.