COMMERCIAL API SUPPLY AGREEMENT BETWEEN AND
Exhibit 10.10
***Text Omitted and Filed Separately
with the Securities and Exchange Commission.
Confidential Treatment Requested
Under 17 C.F.R. Sections 200.80(c) and Rule 24b-2
COMMERCIAL API SUPPLY AGREEMENT
F.I.S. - FABBRICA ITALIANA SINTETICI S.p.A.
EXHIBITS AND SCHEDULES TO AGREEMENT
1.1Initial Validation Stability Studies
1.2Commercial Stability Studies
2.1Initial Non-Binding Forecast
2.2Batch Sizes
3.1 |
API Prices |
THIS COMMERCIAL SUPPLY AGREEMENT (the “Agreement”) is made and entered into as of the 9th day of March, 2017 (the “Effective Date”) by and between F.I.S. - FABBRICA ITALIANA SINTETICI S.p.A., a corporation organized under the laws of the Republic of Italy, with offices at Xxxxx Xxxxxx 00, 00000 Xxxxxxxxxx Xxxxxxxx (XX), Xxxxx (hereinafter “FIS”) and NEUROCRINE BIOSCIENCES Inc., a corporation organized under the laws of Delaware, with offices at 00000 Xx Xxxxxx Xxxx, Xxx Xxxxx, Xxxxxxxxxx, 00000, XXX (“Neurocrine”), on behalf of itself and its wholly-owned subsidiary, Neurocrine Therapeutics, Ltd., a corporation organized under the laws of the Republic of Ireland, (“Subsidiary”, and together with Neurocrine, "Purchaser").
FIS and Purchaser are sometimes referred to herein individually as a “Party” and collectively as “Parties.”
WHEREAS, FIS is a pharmaceutical company engaged in the development, manufacture and sale of pharmaceutical active ingredients;
WHEREAS, Purchaser is a company that is engaged in the development, distribution and sale of certain pharmaceutical products;
WHEREAS, FIS and Purchaser entered into a Master Services Agreement dated July 18, 2014 for Services including process scale up and manufacture of fine chemicals.
WHEREAS, FIS and Purchaser also entered into a Validation Agreement dated September 22, 2015 (the “Validation Agreement”) for validation and stability services for the API, which will automatically terminate as of the Effective Date with remaining services, specification, and payment schedules incorporated by reference into Exhibit 1.1.
WHEREAS, FIS is now willing to supply the API and, in general, the Services to Purchaser upon the terms and conditions set forth herein. This agreement now supersedes all previous Agreements entered into by the Parties for supply of API and the Services.
NOW, THEREFORE, in consideration of the foregoing recitals, mutual covenants, agreements, representations and warranties contained herein, the Parties hereby agree as follows:
“API” shall mean the active pharmaceutical ingredient, valbenazine tosylate (NBI-98854).
“API Price” shall have the meaning provided in Section 3.1 of this Agreement.
“Adverse Event” shall mean any adverse event associated with the use of the Finished Product in humans, whether or not considered drug-related, including (i) an adverse event
1
occurring in the course of the use of the Products in professional practice; (ii) an adverse event occurring from an overdose, whether accidental or intentional, related to the Products; (iii) an adverse event occurring from drug abuse related to the Products; (iv) an adverse event occurring from withdrawal of the Products; and (v) any failure of expected pharmacological action, or such other definition as may from time to time be set forth in 21 CFR Part 314.80.
“Alternative Dispute Resolution” shall have the meaning provided in Section 15.7(b) to this Agreement.
“Breach Notice” has the meaning specified in Section 14.2(a).
“Business Day” shall mean a day when both (i) banks operating in Vicenza, Italy are generally open for business and (ii) banks operating in San Diego, California are generally open for business.
“Certificate of Analysis” shall mean a document identified as such and provided by FIS to Purchaser that (i) sets forth the analytical test results for a specified lot of API shipped to Purchaser hereunder, (ii) is in conformance with each applicable Drug Application and (iii) states whether such API is manufactured in accordance with the Specifications and cGMPs.
“Certificate of Conformance” shall mean a document identified as such and provided by FIS to Purchaser that states that the specified lot of API shipped to Purchaser hereunder is manufactured in accordance with the Specifications and cGMPs.
“Confidential Information” shall have the meaning provided in Section 12.3 of this Agreement.
“Consent” shall mean any consent, authorization, permit, certificate, license or approval of, exemption by, or filing or registration with, any Governmental Authority or other Person.
“Current Good Manufacturing Practices” or “cGMPs” shall mean the regulatory requirements for the current good manufacturing practices in the United States Code of Federal Regulations 21 CFR Part 210 & Part 211, as amended, European Union (“EU”) “Eudralex Volume 4 Good Manufacturing Guidelines - Part 2 - Basic Requirements for Active Substances used as Starting Materials”, also known as the ICH Good Manufacturing Practice Guide for Active Pharmaceutical Ingredients (Q7) the MHLW GMP/GQP ordinances and accompanying regulations in Japan, as applicable to the API manufacturing, and all applicable rules, regulations, promulgations, policies and guidelines in effect at any given time during the applicable Term.
“Data” shall mean information relating to: (i) the business of Purchaser or any Purchaser Affiliate; (ii) customers or suppliers of Purchaser or any Purchaser Affiliate, as it relates to any API or Finished Product; (iii) any of the API or Finished Product information including all Specifications therefore and any other information relating thereto delivered by Purchaser to FIS under this Agreement.“Delivery Date” shall mean the date specified by Purchaser that FIS shall make particular API(s) available for shipment out of the applicable Facility(ies) in accordance with this Agreement.
“Disclosing Party” shall have the meaning provided in Section 12.3(a) of this Agreement.
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“Drug Application” shall mean any New Drug Application filed with the FDA, any Supplemental New Drug Application filed with the FDA, any product license or any equivalent drug application or similar pharmaceutical product approval administered by any foreign Governmental Authority, or extension or renewal of any of the foregoing.
“Facility” shall mean, with respect to the APIs, FIS’s manufacturing facility located at Xxxxx Xxxxxx 00, 00000 Xxxxxxxxxx Xxxxxxxx (Xxxxxxx), Xxxxx, or other facilities of FIS as are mutually agreed upon in writing by the parties.
“FCA” shall mean the Incoterm Free Carrier.
“FDA” shall mean the US Food and Drug Administration .
“FD&C Act” shall mean the Food, Drug, and Cosmetic Act., a set of laws amended from time to time giving authority to the U.S. Food and Drug Administration (FDA) to oversee the safety of food, drugs, and cosmetics.
“Finished Product” means commercially packaged and labeled valbenazine tosylate.
“Firm Zone” shall have the meaning provided in Section 2.2(b) of this Agreement.
“FIS Affiliate” shall mean any Person who, directly or indirectly, through one or more intermediaries, Owns, is Owned by or is under common Ownership with FIS, a Party, where “Own,” “Owned” or “Ownership” refers to (i) direct or indirect possession of at least fifty percent (50%) of the outstanding voting securities of a corporation or a comparable ownership in any other type of entity; or (ii) the actual ability of a Person or group to control and direct the management of the Person, whether by contract or otherwise.
“Force Majeure Event” shall have the meaning provided in Article XIII of this Agreement.
“FIS Confidential Information” shall have the meaning provided in Section 12.1 of this Agreement.
“FIS Indemnitee” shall have the meaning provided in Section 10.2 of this Agreement.
“FIS Intellectual Property” shall mean (i) all Intellectual Property owned by or licensed to FIS prior to the Effective Date and (ii) all Intellectual Property developed by FIS independent of FIS’s performance of its obligations under this Agreement; provided, however, that such Intellectual Property does not relate to the API, or utilizes or is based on any Purchaser Intellectual Property
“FIS Nonconformity” shall have the meaning set forth in Section 5.7 of this Agreement.
“Governmental Authority” shall mean any nation or government, any state, province, or other political subdivision thereof or any entity with legal authority to exercise executive, legislative, judicial, regulatory or administrative functions or pertaining to government in any of the Markets.
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“Key Raw Materials” shall have the meaning as set forth on Schedule 4.4(c) of this Agreement.
“Incoterm” shall mean the mean the international commercial terms published by the International Chamber of Commerce, 2010 edition.
“Indemnified Party” shall have the meaning provided in Section 10.3 of this Agreement.
“Indemnifying Party” shall have the meaning provided in Section 10.3 of this Agreement.
“Intellectual Property” shall mean (i) trademarks, trademark registrations, trademark applications, service marks, service xxxx registrations, service xxxx applications, business marks, brand names, trade names, trade dress, names, logos and slogans and all goodwill associated therewith; (ii) patents, patent rights, provisional patent applications, patent applications, designs, registered designs, registered design applications, industrial designs, industrial design applications and industrial design registrations, including any and all divisions, continuations, continuations-in-part, extensions, substitutions, renewals, registrations, revalidations, reexaminations, reissues or additions, including supplementary certificates of protection, of or to any of the foregoing items; (iii) copyrights, copyright registrations, copyright applications, original works of authorship fixed in any tangible medium of expression, including literary works (including all forms and types of computer software, including all source code, object code, firmware, development tools, files, records and data, and all documentation related to any of the foregoing), musical, dramatic, pictorial, graphic and sculptured works; (iv) trade secrets, technology, discoveries and improvements, know-how, proprietary rights, formulae, confidential and proprietary information, technical information, techniques, inventions, designs, drawings, procedures, processes, models, formulations, manuals and systems (whether or not patented, patentable, copyrighted, or copyrightable) including all biological, chemical, biochemical, toxicological, pharmacological and metabolic material and information and data relating thereto and formulation, clinical, analytical and stability information and data which have actual or potential commercial value and are not available in the public domain; and (v) all other intellectual property or proprietary rights, in each case whether or not subject to statutory registration or protection.
“Laws” shall mean any and all applicable local, municipal, provincial, federal and international laws, statutes, ordinances, rules, regulations or operating procedures now or hereafter enacted or promulgated by any Governmental Authority, including the FD&C Act.
“Losses” shall mean, collectively, any and all costs, expenses, including reasonable fees and disbursements of counsel and any consultants or experts and expenses of investigation, obligations, liens, assessments, judgments, damages, liabilities, fines and penalties imposed upon or incurred by an Indemnified Party.
“Materials” shall mean (i) all raw materials (including Key Raw Materials), components, work-in-process and other ingredients required to manufacture the APIs and (ii) all packaging materials used in the manufacture, storage and shipment of APIs.
“Materials Certification” shall have the meaning provided in Section 4.4(b) of this Agreement.
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“Nonconformity” shall have the meaning provided in Section 5.3(a) of this Agreement.
“Non-binding Forecast” shall have the meaning provided in Section 2.2(a) of this Agreement.
“Party” and “Parties” shall have the meanings given such terms, respectively, in the first paragraph of this Agreement.
“Purchaser Affiliate” shall mean any Person who, directly or indirectly, through one or more intermediaries, Owns, is Owned by or is under common Ownership with Purchaser, where “Own,” “Owned” or “Ownership” refers to (i) direct or indirect possession of at least fifty percent (50%) of the outstanding voting securities of a corporation or a comparable ownership in any other type of entity; or (ii) the actual ability of a Person or group to control and direct the management of the Person, whether by contract or otherwise.
“Purchase Order” shall have the meaning provided in Section 2.3 of this Agreement.
“Purchaser Confidential Information” shall have the meaning provided in Section 12.2 of this Agreement.
“Purchaser Indemnitee” shall have the meaning provided in Section 10.1 of this Agreement.
“Purchaser Intellectual Property” shall mean any and all Intellectual Property relating to the APIs that is (i) owned or controlled by Purchaser as of the Effective Date, or (ii) developed, acquired, or controlled by Purchaser after the Effective Date.
“Quality Agreement” shall have the meaning provided in Section 4.5 of this Agreement.
“Receiving Party” shall have the meaning provided in Section 12.3(a) of this Agreement.
“Regulatory Approval” means all approvals, product and/or establishment licenses, registrations or authorizations of federal, state or local regulatory agency, department, bureau or other governmental entity, necessary for the sale, offering for sale, and distribution of a human pharmaceutical product in the Territory.
“Remediation Period” has the meaning specified in Section 14.2(a).
“Representative” shall have the meaning provided in Section 12.3(b) of this Agreement.
“Services” shall mean activities contemplated to be completed pursuant to the Validation Agreement dated September 22, 2015.
“Specifications” shall mean, with respect to any API, all specifications for Materials, approved suppliers, formula, manufacturing, analytical and testing procedures, release, packaging, storage, and other processes relating to the manufacture of such API as agreed by the Parties and specified in the Quality Agreement (Exhibit 5.1), including all master formulas, process flow
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diagrams, bills of materials, master batch records and all manufacturing and packaging work orders, all as amended from time to time by the Parties.
“Tax” shall mean any liability imposed by a Governmental Authority (as defined above and applied without geographical or other restriction) on gross receipts, sales, use, permits, value added, personal property, intangibles, and any stamp duty, customs duty, transfer, license, registration, premium or withholding tax, or any other kind of tax of any kind whatsoever; except that the term, “Tax” shall include any interest, fines, penalties, additions to tax, or additional amounts in respect of the foregoing Taxes or returns required to be filed under applicable Laws.
“Term” shall mean, with respect to a particular API, the period during which this Agreement is in effect with respect to such API pursuant to Article XIV.
“Third-Party” shall mean a person or entity other than FIS or Purchaser, or either of their respective Affiliates or successors.
“Third-Party Claim” shall have the meaning provided in Section 10.1 of this Agreement.
Article II
Sale and Purchase of API
(a) |
Subject to the terms and conditions of this Agreement, FIS agrees to manufacture, to the extent ordered by Purchaser in accordance with this Agreement, the API at the applicable Facility(ies) for sale to Purchaser. |
(b)Subject to the terms and conditions of this Agreement, FIS agrees to perform the Services at a price and timing as agreed between the Parties and set forth on Schedule listed in Exhibit 3.1.
(a)General. During the Term of this Agreement, Purchaser shall provide to FIS a non-binding projection for the next succeeding […***…] (or such shorter period remaining under the term of this Agreement) of the anticipated volumes of each API to be ordered by Purchaser pursuant to Section 2.3 below (each, a “Non-binding Forecast”). The initial such Non-binding Forecast is set forth on Schedule 2.1. Beginning on the […***…] after the Effective Date, Purchaser shall provide such rolling projections to FIS on the 10th day of the first month of each calendar quarter (January 10, April 10, July 10, October 10) during the Term of this Agreement. FIS shall notify the Purchaser in writing within ten (10) Business Days of receipt of any Non-binding Forecast if the quantities of API indicated therein by the Purchaser exceed FIS’s production capacity.
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the specified volumes of those APIs (each such […***…] period shall be referred to herein as the “Firm Zone”). FIS acknowledges and agrees that the first […***…] of the Term the Non-Binding Forecast submitted by Purchaser may, at the discretion of the Purchaser, be zero. Should Purchaser wish to increase order quantities at any time in excess of the volumes permitted under this Section 2.2(b), then the Purchaser may contact FIS to request and FIS shall determine subject to Section 2.4, if and how it will supply any such increase in volumes. |
2.3Purchase Orders. Purchaser shall deliver to FIS an initial purchase order for the aggregate volume of API in Firm Zone. Thereafter with the release of each Quarterly Forecast, Purchaser shall deliver […***…] for each subsequent […***…] period which becomes the new Firm Zone (each a “Purchase Order”). Each such aggregate API volume shall constitute an amount equal to a multiple of FIS’s standard batch size for the applicable API (as specified in Schedule 2.3), which such amount shall be at least […***…] batches for the year 2019, and at least […***…] batches for the years 2020 and 2021. Each Purchase Order shall specify the volume of each API ordered, which shall be comprised of volumes equivalent to FIS’s standard batch size for applicable API (as specified in Schedule 2.3) or multiples thereof, and the Delivery Date the API is to be made available to Purchaser for pick-up by the carrier or freight forwarder. Acceptance of any Purchase Order which does not represent a full batch size for the relevant API (or multiple thereof) will be subject to FIS’s sole discretion. Purchase Orders may be delivered electronically or by other means to such location as FIS shall designate. Each Purchase Order that is submitted, or deemed submitted, in accordance with this Section 2.3 shall be accepted or rejected by FIS within […***…] Business Days. If FIS does not accept or reject any Purchase Order within […***…] Business Days, such Purchase Order shall be deemed accepted. If FIS rejects any Purchase Order, Purchaser shall have the right to modify such Purchase Order within […***…] Business Days, and FIS shall have […***…] Business Days to accept or reject such modified Purchase Order. If FIS deosn’t accept or reject such modified Purchase Order within […***…] Business Days, then such modified Purchase Order shall be deemed accepted.
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2.6[…***…]. If at any time […***…] determines […***…], or […***…] which is of a type that would […***…] shall first […***…] and agrees to […***…].
Article III
Prices for APIs; Shipment; Payments
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(b) |
During the Term of this Agreement, the Parties agree to share cost improvement measures related to the manufacturing of the API. All cost improvement investments specific to each API shall require the written consent of both Parties. FIS shall be entitled to receive reimbursement for reasonable costs which it incurred in developing such cost improvements. Cost improvement benefits concerning such manufacturing shall be allocated 50:50 between the Parties and reflected in the price set forth on an amended Schedule 3.1. |
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(c) |
During the Term of this Agreement, Purchaser shall pay the applicable price for the Services as forth on Schedule 3.1, and as specified in a Purchase Order. |
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3.4 |
Payment Denominations. All payments to be made under this Agreement shall be made in United States dollars unless otherwise specified herein or agreed by the Parties. |
(a)Purchaser shall timely pay any and all Taxes arising out of any payment, transaction, or activity under this Agreement to the extent that Purchaser is liable for such Taxes under the Laws of the Governmental Authority that imposes said Taxes.
Article IV
Manufacture of Product
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(ii) |
Should either Party initiate a Specification change designed to improve the API manufacturing process, the cost of such change will be agreed between the Parties and subsequent cost improvement shall be shared between the Parties subject to Section 3.1(b). The Parties will agree to modifications, if any, to the Product Price and to Schedule 3.1. |
(a) |
General. The Parties shall perform on an on-going basis all validations and stability studies required by the Specifications, cGMPs or Laws in connection with the |
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regular course of manufacturing the APIs for commercial supply, provided that Purchaser shall reimburse FIS for the cost of any validation or stability studies necessitated by a change to the Specifications. |
(c)Procurement. FIS will be responsible for procuring all Materials required for the manufacture of APIs under this Agreement, in particular the Key Raw Materials as set forth in the Quality Agreement. FIS will procure the Key Raw Materials from the approved suppliers set forth on in the Quality Agreement) and at the Purchaser negotiated cost, such cost to be a pass through in the final API price as set forth on Schedule 3.1. FIS shall not procure the Key Raw Materials from any supplier not listed in the Quality Agreement without the prior written consent of Purchaser.
Article V
Testing and Quality Assurance
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(b)Independent Testing. If the Parties disagree as to whether any API(s) subject to hold or rejected meets the Specifications, Purchaser’s most senior quality assurance officer and FIS’s most senior quality assurance officer, or such other persons as they may designate in writing, shall confer to review samples and/or batch records, as appropriate. If the disagreement is not resolved, then samples, batch records and other data relating to the batch in dispute shall promptly be submitted for testing and evaluation to an independent Third Party (including a testing laboratory) approved in writing by both Parties. The findings of the Third Party shall be final and binding on the Parties. The cost of the testing and evaluation by the Third Party shall be borne by the Party whose position was not supported by the determination of the Third Party.
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(i) |
any portion of such batch or shipment of API held in inventory by FIS shall not be delivered to Purchaser; |
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any investigations related to such APIs and approved in writing the disposition of the API subject to the Nonconformity; and |
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(iii) |
any portion of any batch of Finished Product manufactured using such API that is held in stock by Purchaser shall maintain a “hold” or “unpassed” status, and shall not be released by Purchaser, until Purchaser has completed any investigations related to the API that was the subject of the Nonconformity and approved in writing the disposition of such API. |
5.5 |
Adverse Events. With respect to any Finished Product, FIS shall notify Purchaser promptly following any receipt of information of a possible Adverse Event. To the extent an Adverse Event of which Purchaser becomes aware potentially implicates FIS’s manufacturing of any API or other processes at any applicable Facility(ies), Purchaser shall promptly inform FIS of such Adverse Event and shall disclose to FIS any information it has regarding that Adverse Event. |
Purchaser shall be responsible for the costs of all recalls of Finished Products and initiated by Purchaser or any Affiliate or licensee thereof; provided that, notwithstanding the foregoing, FIS shall reimburse Purchaser for all reasonable costs and expenses incurred by Purchaser in procuring or complying with the requirements of any recall of Finished Products that is attributable to FIS’s failure to manufacture, test, package, store, label, release or deliver any API in accordance with the Specifications, Laws, or cGMPs. FIS shall, at Purchaser’s sole option, either (a) replace the API which is the subject of such recall at no additional cost to the Purchaser as soon as reasonably practicable, or (b) reimburse Purchaser for the amount paid by Purchaser to purchase and ship the API which is the subject of such recall.
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Article VII
Intellectual Property
(a)Purchaser Intellectual Property. FIS acknowledges and agrees that, as between Purchaser and FIS, Purchaser owns all rights in and to the Purchaser Intellectual Property, including all rights in and to the API, the Finished Product, the Drug Applications for the Products, the Data and documentation, specifications and processes associated with the API and/or Finished Product. In particular, FIS acknowledges and agrees that: (i) all of the Specifications contain confidential information of Purchaser and are and shall remain the property of Purchaser; and (ii) all of the patents, trademarks and API formulation owned by Purchaser which apply to the manufacture, or use of API
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covered by this Agreement are and shall remain Purchaser Intellectual Property. Except as expressly provided in Section 7.3 below, nothing in the Agreement shall be deemed to transfer or convey, expressly or by implication, any Purchaser Intellectual Property to FIS.
(b)FIS Rights. Purchaser acknowledges and agrees that FIS owns all rights in and to the FIS Intellectual Property.
7.2New Developments and Modifications.
(a)API Developments. All Intellectual Property relating to an API conceived, reduced to practice, authored, or otherwise generated or developed in whole or in part in the course of activities under this Agreement, whether patentable or not, shall be “API Developments.” Such API Developments shall include without limitation, any know-how or improvements relating to the API or the manufacture of the API, conceived, reduced to practice or otherwise developed solely by or on behalf of FIS, in connection with the performance of its obligations hereunder.
(b)Ownership of API Developments. FIS will, in accordance with applicable Law, obtain the rights to assign to Purchaser all of the rights, title and interest in and to API Developments and rights to Intellectual Property arising therefrom to the extent any such API Developments and/or Intellectual Property are developed wholly or in part by FIS personnel. Without further payment to FIS, as between the Parties, Purchaser shall own all right, title and interest in and to all API Developments, whether made, conceived, reduced to practice, authored or otherwise generated or developed solely by FIS personnel, solely by Purchaser personnel, or jointly by FIS and Purchaser personnel, and all rights to Intellectual Property arising therefrom. FIS will, and hereby does, assign to Purchaser all of its rights, title and interest in and to API Developments and rights to Intellectual Property arising therefrom. FIS will provide reasonable assistance to Purchaser, at Purchaser’s expense, in obtaining and enforcing and defending Purchaser’s ownership of the API Developments and appurtenant rights to Intellectual Property, including without limitation and as applicable, the assignment to Purchaser of all their right, title and interest of its employees or independent contractors in and to such API Developments and appurtenant rights to Intellectual Property.
(a)By Purchaser. Under the terms and subject to the conditions of this Agreement, Purchaser hereby grants FIS the non-exclusive, royalty-free, fully-paid, under the Purchaser Intellectual Property solely to perform FIS’s obligations under this Agreement.
Article VIII
Access; Audit Rights
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Purchaser’s audit and inspection rights under this Section 8.1 shall not extend to any portions of any Facility, documents, records or other information which do not relate to APIs or Materials or, to the extent they relate or pertain to Third Parties or their products or materials, FIS may redact information relating to Third Parties and their respective products or materials from any documents deliverable to Purchaser in connection with Purchaser’s exercise of its audit and inspection rights hereunder. FIS shall participate in Purchaser’s audit and shall respond to any issues raised by Purchaser based on such audit with a corrective action plan.
Article IX
Representations, Warranties, and Covenants
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(c) |
Consents. FIS has all governmental approvals, permits and licenses necessary for the performance of its obligations hereunder. |
(c)No Other License Required. To Purchaser’s knowledge, the manufacture and supply of APIs pursuant to this Agreement do not and shall not require a license under any Intellectual Property owned or controlled by Purchaser or any Third Party other than as provided to FIS hereunder.
9.3Storage and Distribution of the APIs. Purchaser shall comply with cGMPs, the Specifications, and all applicable Laws in the storage, handling, and distribution of the APIs supplied by FIS pursuant to this Agreement and in the manufacture, storage, handling, sale, and distribution of all Finished Products manufactured using such API.
Article X
Liability and Indemnification
10.1Purchaser Indemnity: Purchaser shall indemnify, defend and hold harmless FIS, its directors, officers, employees and agents, from and against any and all Losses resulting from claims of any kind and character by any Third Party (a “Third Party Claim”) arising out of, or in connection with, or with respect to the API supplied to and accepted by Purchaser pursuant to this
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Agreement, as well as including without limitation (a) the negligence and/or wilful misconduct of the Purchaser (or any of its directors, officers, employees or agents) in the performance of its obligations hereunder, or (b) the breach by the Purchser of any of the terms of this Agreement. Notwithstanding the foregoing, FIS and its directors, officers, employees, and agents shall not be entitled to indemnification under this paragraph against any claim to the extent resulting from (a) the negligence or wilful misconduct of FIS or any of its directors, officers, employees or agents or (b) the breach by FIS of any of the terms of this Agreement.
10.2FIS Indemnity: FIS shall indemnify, defend and hold harmless, Purchaser, its directors, officers, employees and agents, from and against any and all Losses resulting from claims of any kind and character by any Third Party arising out of or in connection with FIS's performance of its obligations hereunder including without limitation (a) the negligence and/or wilful misconduct of FIS (or any of its directors, officers, employees or agents) in the performance of its obligations hereunder, or (b) the breach by FIS of any of the terms of this Agreement. Notwithstanding the foregoing, Purchaser and its directors, officers, employees, and agents shall not be entitled to indemnification under this paragraph against any claim to the extent resulting from (a) the negligence or wilful misconduct of Purchaser or any of its directors, officers, employees or agents or (b) the breach by Purchaser of any of the terms of this Agreement.
10.3Limitation of Liability: Notwithstanding anything to the contrary herein, neither Party shall be liable to the other for indirect, incidental or consequential damages arising out of any terms or conditions in this Agreement or with respect to the performance thereof.
10.4Indemnification Procedures: Should a Party (the "Indemnified Party") be notified of any Third Party claim in respect of which the other Party (the "Indemnifying Party") may be reasonably liable under the indemnification obligation provided for in this Section 10, the Indemnified Party shall (i) give the Indemnifying Party prompt written notice thereof; and (ii) give the Indemnifying Party the opportunity to defend, negotiate, and settle any such action or claim. To such extent, the Indemnified Party shall provide the Indemnifying Party with all information in its possession, and all authority and assistance necessary to enable Indemnifying Party to defend, negotiate, compromise or settle any such claim, action or suit. The Indemnified Party shall further cooperate fully with the Indemnifying Party and its legal representatives (at the Indemnifying Party's sole cost and expense) in the investigation, negotiation, compromise, settlement and defence of such claim, action or suit. In any case, it is hereby understood that (i) the Indemnified Party reserves the right to retain its own counsel to defend itself (at its own cost and expense) in such claim, action or suit; and (ii) in no event shall either Party enter into any settlement without the prior written consent of the other Party, which shall not be unreasonably withheld.
10.5Survival of Indemnification Obligations: The provisions of this Section 10 shall survive the expiration or termination of this Agreement.
10.6Procedures. Any Person that may be entitled to indemnification under this Agreement (an “Indemnified Party”) shall give written notice to the Person obligated to indemnify it (an “Indemnifying Party”) with reasonable promptness upon becoming aware of any Third-Party Claim or other facts upon which a claim for indemnification will be based. Such notice shall set
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forth such information with respect thereto as is then reasonably available to the Indemnified Party. The Indemnifying Party shall have the right to undertake the defense of any such Third-Party Claim with counsel reasonably satisfactory to the Indemnified Party and the Indemnified Party shall cooperate in such defense and make available all records, materials and witnesses reasonably requested by the Indemnifying Party in connection therewith at the Indemnifying Party’s expense. If the Indemnifying Party shall have assumed the defense of the Third-Party Claim with counsel reasonably satisfactory to the Indemnified Party, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses (other than for reasonable costs of investigation) subsequently incurred by the Indemnified Party in connection with the defense thereof. The Indemnifying Party shall not be liable for any Third-Party Claim settled without its consent, which consent shall not be unreasonably withheld or delayed. The Indemnifying Party shall obtain the written consent of the Indemnified Party prior to ceasing to defend, settling or otherwise disposing of any Third-Party Claim.
11.1FIS Insurance Requirements. During the Term of this Agreement and for […***…] after its expiration or termination, FIS shall at all times maintain insurance policies or self-insurance in such amounts and with such scope of coverage as are adequate to cover FIS’s obligations under this Agreement.
11.2Purchaser Insurance Requirements. During the Term of this Agreement and for […***…] after its expiration or termination, Purchaser shall at all times maintain insurance policies or self-insurance in such amounts and with such scope of coverage as are adequate to cover Purchaser’s obligations under this Agreement.
12.1 Definition of “Purchaser Confidential Information”. As used herein, the term “Purchaser Confidential Information” shall mean all confidential business and technical communications, documents and other information, whether in written, oral or other form, which Purchaser or a Purchaser Affiliate furnishes or discloses to FIS or which FIS otherwise learns in connection with the negotiation or performance of this Agreement (whether relating to Purchaser, a Purchaser Affiliate or any Third Party for which Purchaser has an obligation of confidentiality). FIS agrees that the provisions of this Agreement shall apply to all Purchaser Confidential Information disclosed by Purchaser or a Purchaser Affiliate to FIS or learned by FIS prior to the Effective Date. FIS represents and warrants that prior to the Effective Date, it has not used or disclosed to any Third Party any Purchaser Confidential Information, except as would be permitted hereunder.
12.2 Definition of “FIS Confidential Information”. As used herein, the term “FIS Confidential Information” shall mean (i) all confidential business information and (ii) technical communications, documents or other information in each case, not constituting Purchaser Rights whether in written, oral or other form, of FIS or a FIS Affiliate that are disclosed to Purchaser by
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22611.4-688182 v819
FIS or an FIS Affiliate, or Purchaser otherwise learns in connection with the negotiation or performance of this Agreement; provided, however, that subject to the terms of this Agreement, all information relating to the API shall be Purchaser Confidential Information. Purchaser agrees that the provisions of this Agreement shall apply to all FIS Confidential Information disclosed by FIS or any FIS Affiliate or learned by Purchaser prior to the Effective Date.
12.3 |
Treatment of Confidential Information. Both during the Term of this Agreement and thereafter, FIS shall treat all Purchaser Confidential Information and Purchaser shall treat all FIS Confidential Information in accordance with the requirements of this Article XII. For convenience, Purchaser Confidential Information and FIS Confidential Information are both referred to herein as “Confidential Information” for purposes of establishing the obligations of each Party with regard to the other Party’s Confidential Information. |
(a) |
Nondisclosure. Confidential Information of the other Party shall be kept strictly confidential by the receiving Party and, except as expressly permitted herein, shall not be disclosed to any Third Party by the receiving Party in any manner whatsoever including without limitation, any affiliates, in whole or in part, without first obtaining the other Party’s prior written consent to such disclosure. The standard of care required of each Party in protecting the confidentiality of the other Party’s Confidential Information shall be at least the same standard of care that the receiving Party uses in protecting its own confidential and trade secret information, but in no event shall either Party use less than a reasonable standard of care. Confidential Information may be used by the receiving Party only for the purpose of performing under this Agreement. |
(b) |
Permitted Exceptions. Each Party may disclose the other Party’s Confidential Information (i) to its employees or outside advisors and financing sources in connection with this Agreement who reasonably need to know such information for the purpose of advising or assisting it in connection with this Agreement (each, a “Representative”), (ii) to a Third Party pursuant to a contractual obligation under a material contract, whereby failure to disclose such Confidential Information shall have material adverse effect on the disclosing Party, and (iii) to any Parties required under operation of law. FIS acknowledges that Purchaser will be required to file a copy of this Agreement with Purchaser’s filings to the U.S. Securities Exchange Commission. Purchaser and FIS agree to cooperate in the preparation of a request for confidential treatment with respect to the Agreement, pursuant to which portions of this Agreement will be redacted from all public access. Prior to disclosing any Confidential Information to any Representative pursuant to this Section 13.3(b), the receiving Party will inform such Representative of the proprietary nature of the Confidential Information and will require such Representative to agree in writing (except in the case of outside legal advisors or auditors engaged to prepare either Party’s financial statements or Purchaser’s filings with the Securities Exchange Commission, who may orally agree) to be bound by the requirements of this Article XIII and not to use or disclose the Confidential Information except as permitted herein. Each Party agrees to be responsible for any breach of these confidentiality obligations by its Representatives. It is specifically agreed that (i) Purchaser may disclose FIS Confidential Information to any Purchaser Affiliate under the same conditions provided in this Article XII on a need-to-know basis and (ii) FIS may disclose Purchaser Confidential Information to any FIS Affiliate under the same conditions provided in this Article XII on a need-to-know basis. |
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12.4 |
Excluded Information. Notwithstanding any provision herein to the contrary, the requirements of this Article XII shall not apply to any information of either Party which: |
(a) |
at the time of disclosure hereunder is generally available to the public; |
(b) |
after disclosure hereunder becomes generally available to the public, except through breach of this Article XII by the receiving Party or its Representatives; |
(c) |
was not acquired directly or indirectly from the disclosing Party or its Affiliates and which the receiving Party lawfully had in its possession prior to disclosure by the disclosing Party; |
(d) |
is independently developed by employees or agents of the receiving Party without the use of the Confidential Information of the disclosing Party; or |
(e) |
becomes available to the receiving Party from a Third Party that is not legally prohibited from disclosing such Confidential Information, provided such information was not acquired directly or indirectly from the disclosing Party or its Affiliates. |
Article XIII
Force Majeure Event
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Article XIV
Term; Termination; Remedies
(b) |
Either party at its sole option may immediately terminate this Agreement or a Product Agreement upon written notice, but without prior advance notice, to the other party if: (i) to the extent and if permitted under applicable Law the other party is declared insolvent or bankrupt by a court of competent jurisdiction; or (ii) a voluntary petition of bankruptcy is filed in any court of competent jurisdiction by the other party; |
(c) |
Purchaser may terminate this Agreement upon six months' prior written notice if it intends to no longer order API due to the Finished Product's discontinuance in the market. |
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22611.4-688182 v822
F.I.S. FABBRICA ITALIANA SINTETICI S.p.A.
Xxxxx Xxxxxx 00, 00000 Xxxxxxxxxx Xxxxxxxx (XX), Xxxxx
Attn: Marketing & Sales Director
00000 Xx Xxxxxx Xxxx, Xxx Xxxxx, Xxxxxxxxxx, 00000, XXX
Attention: Vice President, Manufacturing
With a copy to
Attention: Chief Legal Officer
Email: xxxxxxxxx@xxxxxxxxxx.xxx
22611.4-688182 v823
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(a) |
If the Parties fail to resolve any claim, dispute, or controversy of whatever nature arising out of or relating to this Agreement (other than one relating to a breach of Article XII or to the validity, enforceability, infringement or misappropriation of Intellectual Property rights, which shall not be subject to this Section 15.7), or concerning the interpretation, effect, termination, validity, performance and/or breach of this Agreement (a “Claim”), either Party may refer the dispute, by notice to the other Party, to their respective chief executive officers, or their designees, for attempted resolution by good faith negotiations within thirty (30) days after that notice is received. |
(b) Alternative Dispute Resolution. If the Parties cannot reach a resolution of the dispute according to Section 15.7(a), then such dispute shall be finally resolved by binding arbitration in accordance with the then existing commercial arbitration rules under the Rules of Arbitration of the International Chamber of Commerce (“ICC”) by a single arbitrator appointed by ICC in accordance with the said rules. Arbitration shall be conducted in Xxx Xxxx Xxxx, Xxx Xxxx, Xxxxxx Xxxxxx if Purchaser is the defendant party, and in Vicenza, Italy, if FIS is the defendant party, and shall be conducted in the English language.
15.8 |
Subcontractors. FIS may not subcontract to Third Parties any manufacturing functions in connection with the API without prior written approval from Purchaser. |
22611.4-688182 v824
(c) |
Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be deemed to be an original but all of which together shall constitute one and the same instrument. |
15.15 |
Governing Law. This Agreement shall be governed by, construed and enforced in accordance with the laws of the State of New York without regard to principles of conflicts of law,. |
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IN WITNESS WHEREOF, each of the Parties hereto has caused this Agreement to be duly executed as of the date first written above.
By:F.I.S. - FABBRICA ITALIANA SINTETICI S.p.A
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Title:illegible
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By:NEUROCRINE BIOSCIENCES Inc.
Name:/s/ Xxxxx Xxxxxxxx
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Title:Chief Legal Officer
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22611.4-688182 v826
Initial Validation Stability Studies
22611.4-688182 v8
Commercial Stability Studies
Services
Stability Studies |
•Total cost = $[…***…] •Long term stability study ([…***…]) @ $[…***…] •Accelerated stability study ([…***…]) @ $[…***…] •Intermediate stability study ([…***…]) @ $[…***…] •Long term stability study ([…***…]) @ $[…***…] |
Terms of payment |
[…***…] from invoice date for each delivery $[…***…] down payment upon signature $[…***…] after first stability pull $[…***…] year 2 stability start $[…***…] year 3 stability start $[…***…] year 4 stability start
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22611.4-688182 v8
Initial Non-Binding Forecast
Valbenazine Tosylate
22611.4-688182 v8
Schedule 2.3
Batch Sizes
API |
Batch Sizes (in Kilograms) |
valbenazine tosylate |
[…***…] |
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22611.4-688182 v8
API |
Number of Batches1 Purchased per Year |
Price Per Kilogram ($) |
valbenazine tosylate |
[…***…] |
[…***…] |
valbenazine tosylate |
[…***…] |
|
valbenazine tosylate |
[…***…] |
|
valbenazine tosylate |
[…***…] |
|
valbenazine tosylate |
[…***…] |
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Note 1 - Based Upon Batch Size Detailed in Schedule 2.2
Minimum Retest Dating
API |
Number of Months |
valbenazine tosylate |
[…***…] |
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* *** Confidential Treatment Requested |
* *** Confidential Treatment Requested |
Exhibit 5.1