Chancery Says Takeda Liable For AbbVie's Lupron Supply Lag

By Leslie Pappas (September 22, 2021, 6:31 PM EDT) -- Japanese drugmaker Takeda Pharmaceutical Co. Ltd. is liable to distributor AbbVie Endocrine Inc. for breaching their supply agreement for cancer drug Lupron Depot, a Delaware Chancery judge ruled Wednesday, teeing the companies up for a second trial to determine the damages stemming from ongoing delivery disruptions.

Vice Chancellor Sam Glasscock III agreed with AbbVie that Takeda failed to comply with good manufacturing practices, fulfill firm orders and maintain a three-month "safety stock" of the drug at all times as required by their agreement. He also found Takeda's breaches caused injury to AbbVie, a necessary element to prove a breach of contract claim in Illinois, where AbbVie is...

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