Celgene prevails over Indian supplier in TRO/preliminary injunction hearing to prevent termination of supply agreement

Client(s) Celgene Corporation

Celgene Corporation affiliate Abraxis Bioscience, Inc., represented by Jones Day, does not have to continue to supply pharmaceuticals to Indian distributor Biocon Limited in the face of evidence of continued product diversion, a district court judge ordered. On Monday, September 26, after two rounds of briefing and a hearing, the Honorable Judge Berman of the Southern District of New York found for Abraxis. The dispute arose after Biocon failed to prevent subdistributors from exporting the drugs to countries outside of its designated territory under the agreement, despite repeated warnings from Abraxis. Biocon sought a TRO and preliminary injunction to force Abraxis to continue supplying the drugs pending arbitration. In denying temporary and preliminary injunctive relief, Judge Berman noted that Biocon failed to demonstrate that it would suffer irreparable harm, did not show a likelihood of success on the merits, and did not show that the balance of hardships tipped decidedly in its favor. Following the issuance of Judge Berman's opinion, Biocon withdrew its request for arbitration pending before the ICC.

Biocon Ltd. v. Abraxis BioScience, LLC, No. 16-CIV-6894 (RNB) (S.D.N.Y.) Judge Berman