Analysis Group Client Wellstat Therapeutics Awarded Over $70 Million in Damages in Breach of Contract Suit

November 02, 2017

In a recent Delaware Chancery Court trial, Analysis Group client Wellstat Therapeutics Corporation, a biopharmaceuticals developer, prevailed in a breach of contract dispute against BTG International, Inc. The two parties had entered a distribution agreement for BTG to launch and market Wellstat's oncology drug Vistogard®, an antidote for overexposure to certain chemotherapy treatments.

Working with Wellstat's Counsel Susman Godfrey, LLP, an Analysis Group team led by Managing Principal Alan White and Associate Michael Schreck supported expert Harry Boghigian in providing an evaluation of BTG's efforts to launch and market the drug. Mr. Boghigian concluded that BTG's efforts were far below what was needed to successfully launch Vistogard®. A central piece of Mr. Boghigian's testimony was a critique of the sales model BTG used to justify its level of sales support.

Vice Chancellor J. Travis Laster ruled in favor of Wellstat, awarding $55.8 million in damages and an expected $15 million in prejudgment interest, reflecting the lower sales associated with BTG's inadequate marketing efforts.