Apotex Lawsuit Claims Pfizer Subsidiary Violated Profit-Sharing Agreement

Apotex took Pfizer subsidiary Hospira to New York federal court over an alleged violation of an agreement that allegedly resulted in Apotex missing out on hundreds of millions of dollars in profit.

The arrangement aimed at pooling costs and sharing the profits between the two companies. It stated that Hospira would reimburse Apotex for any “liquidated damages” resulting from the subsidiary’s failure to meet supply commitments.

Apotex claimed Hospira exploited the supply constraints it created and competed against the company in the markets they were supposed to share, resulting in plummeting sales for Apotex and skyrocketing profits for Hospira that should have been shared under the agreement.