Appellate Court Affirms Victory for Patheon in Antitrust Suit with Procaps

Washington, DC ­­– January 5, 2017 – Cooley advised Patheon in its multiyear antitrust battle with former joint venture partner Procaps Laboratories. Both companies design and manufacture gel capsule delivery mechanisms for medications, known as softgels.

In January 2012, Patheon and Procaps signed a seven-year collaboration agreement to provide softgel development and manufacturing services to customers worldwide. In December 2012, Patheon acquired Banner Pharmacaps, also a softgel specialist company. Following this acquisition, Procaps sued Patheon, alleging that the acquisition converted the collaboration agreement into an illegal market division, violating US antitrust laws. In 2015 on behalf of Patheon, Cooley won summary judgment, dismissing the case in full.

On appeal, following thorough review and oral argument, the US Court of Appeals for the 11^th Circuit concluded that Patheon was entitled to summary judgment, reaffirming the magistrate’s grant "both because Procaps failed to establish the foundational requirement of concerted action necessary to maintain a Section 1 claim under the Sherman Act, and because Procaps also failed to show any actual anticompetitive effectives."  

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