"I accept Mr. Steger's approach to estimating Apotex's lost profits."- Judgment in 2017 ONSC 1323
This action involved two pharmaceutical molecules, Amoxi-Clav and Carb-Levo, which were the subject of certain bioequivalence studies by the Defendant which were necessary for U.S. FDA approval for the Plaintiff to sell in the U.S. The studies were found to be deficient and caused delays in the Plaintiff’s entry into the U.S. market.
CHS was retained by Counsel for the Defendant as financial expert to quantify the Apotex's lost profits as a result of the delayed entry. The quantification addressed Apotex’s lost sales, relevant costs, and resultant lost profits. At particular issue between the experts were the estimates of market share and the product allowances (or rebates) percentages that would have been paid by the Plaintiff to pharmacies to carry the products.
The trial judge accepted CHS’s loss quantification findings, which were also upheld on appeal.