Patheon Secures $18.5 Million in Attorney Fees Post Procaps Antitrust Victory

Washington, DC – August 25, 2017 – As part of Patheon’s multiyear antitrust battle with former joint venture partner Procaps Laboratories, Cooley secured an $18.5 million fee and cost award in Patheon’s favor as the prevailing party under the Florida Deceptive and Unfair Trade Practices Act. The $18.5 million award in Patheon’s favor represents all amounts Patheon sought in its fee and cost petition.

The court had high praise for the Cooley and Patheon team, holding that “Patheon’s counsel obtained an excellent result. Obtaining a defense summary judgment on all counts and having the ruling affirmed on appeal is surely a significant defense victory … Patheon was well served by a dedicated effort from a well-coordinated legal team.” Cooley litigation partner Mike Klisch led the team for Patheon.

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 11th 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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Related Contacts
Mike Klisch  Partner Washington, DC
Mazda Antia  Partner San Diego, Los Angeles – Downtown
Robert Cahill  Partner Reston
Howard Morse  Partner Washington, DC
Mary Kathryn Kelley  Pro Bono Counsel San Diego
Dee Bansal  Partner Washington, DC
David Burns  Special Counsel Washington, DC
Joshua Siegel  Special Counsel Washington, DC
Jane van Benten  Associate Washington, DC
Craig TenBroeck  Partner San Diego