Mitsubishi Tanabe lands '$940m' revenue boost after Novartis win
Managing IP is part of the Delinian Group, Delinian Limited, 4 Bouverie Street, London, EC4Y 8AX, Registered in England & Wales, Company number 00954730
Copyright © Delinian Limited and its affiliated companies 2024

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Mitsubishi Tanabe lands '$940m' revenue boost after Novartis win

Credit: Taljat / Adobe Stock

Paul Hastings led Mitsubishi Tanabe to victory over Novartis at the International Chamber of Commerce

Japanese pharma company Mitsubishi Tanabe has secured an arbitration victory against Novartis at the International Chamber of Commerce, a case related to blockbuster multiple sclerosis drug Gilenya (fingolimod).

According to Mitsubishi Tanabe, a subsidiary of Mitsubishi Chemical Group, the award will see its revenue increase by around $940 million.

The tribunal, which issued the decision on Monday, February 13, denied Novartis’s claims that provisions of a licence controlling royalties that it had to pay to Mitsubishi Tanabe in the US, EU and other jurisdictions were invalid.

Although Mitsubishi had received royalties from Novartis’s Gilenya, which used the Japanese company's patent rights and know-how, it hadn’t recognised those royalties as revenue. This was due to International Financial Reporting Standards 15, which sets out how to report information about revenue and cash flows from contracts with customers.

However, as a result of the ICC's decision, Mitsubishi can now recognise these royalties as revenue.

In a filing with Japan’s Financial Accounting Standards Foundation on Thursday, February 16, Mitsubishi said it was revising its revenue forecast for this quarter by ¥126 billion ($938.4 million) in light of the arbitration win.

The filing said: “The royalties which have not been recognised as revenue … during the arbitration proceedings will all be recognised as revenue in the fourth quarter of the fiscal year ending March 31 2023.”

Mitsubishi also received ¥3 billion in arbitration-related costs from Novartis.

The Swiss pharma company had filed an application for an arbitration against Mitsubishi Tanabe in 2019.

Paul Hastings advised Mitsubishi Tanabe.

more from across site and ros bottom lb

More from across our site

The winner of Managing IP’s Life Achievement Award discusses 50 years in IP law and how even he can’t avoid imposter syndrome
Saya Choudhary of Singh & Singh explains how her team navigated nine years of litigation to secure record damages of $29 million and the lessons learned along the way
The full list of finalists has been revealed and the winners will be presented on June 20 at the Metropolitan Club in New York
A team of IP and media law specialists has joined from SKW Schwarz alongside a former counsel at Sky
The Irish government has delayed a planned referendum on whether Ireland should join the Unified Patent Court, prompting concern about when a vote may take place
With more than 250 winners recognised during the ceremony, there are many reasons to be positive about the health of the IP industry in EMEA
Practitioners say the USPTO’s latest guidance has some helpful clarifications and is a good reminder of the importance of checking AI outputs
Susanne Schmidt discusses why trademarks are more than 'just a name' and why she would choose green farming as an alternative career
The former head of life sciences at Kramer Levin has joined Orrick, a firm that hopes to grow in the sector
Lionel Martin of August Debouzy and Kristof Neefs at Inteo share how they prevailed in a UPC Court of Appeal case surrounding access to documents
Gift this article