Elekta To Pay Humediq EUR 8.9 Million In Legal Dispute
Published: May 24, 2016
STOCKHOLM--(BUSINESS WIRE)--Regulatory News:
On May 23, 2016, an arbitration tribunal in London issued an award in a dispute between two Elekta (EKTA-B.ST) (STO:EKTAB) group companies and humediQ GmbH.
The award concludes an arbitration with humediQ arising out of an agreement for the exclusive supply of Identify™ under the Elekta label, which Elekta entered into in 2011. Identify is a patient identification and setup verification product. Elekta decided to discontinue to market and sell Identify in late 2014, due to the product’s commercial viability.
The tribunal determined that the Elekta companies did not validly terminate the 2011 agreement and that, as a result, they must pay humediQ approximately EUR 8.9 million for Identify systems that the Elekta companies did not order according to minimum volume commitments in the contract. This amount is less than half of the EUR 19 million that humediQ claimed in the arbitration. The tribunal held that the respective success of each party was comparable and on that basis that each party should bear its own legal costs. The Elekta companies do not have any further obligation to purchase Identify systems from humediQ.
In addition, Elekta will write off approximately EUR 5 million connected to payments made under the agreement. The negative result of approximately EUR 14 million will be taken in the fourth quarter of Elekta’s fiscal year 2015/16 as a “non-recurring item”.
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The above information is such that Elekta AB (publ) shall make public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 18:00 CET on May 24, 2016.
Elekta is a human care company pioneering significant innovations and clinical solutions for treating cancer and brain disorders. The company develops sophisticated, state-of-the-art tools and treatment planning systems for radiation therapy, radiosurgery and brachytherapy, as well as workflow enhancing software systems across the spectrum of cancer care. Stretching the boundaries of science and technology, providing intelligent and resource-efficient solutions that offer confidence to both health care providers and patients, Elekta aims to improve, prolong and even save patient lives.
Today, Elekta solutions in oncology and neurosurgery are used in over 6,000 hospitals worldwide. Elekta employs around 3,800 employees globally. The corporate headquarters is located in Stockholm, Sweden, and the company is listed on NASDAQ Stockholm. Website: www.elekta.com.
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