QLT Commences Breach Of Contract Action Against Valeant Pharma - Quick Facts

(RTTNews) - QLT Inc. (QLTI, QLT.TO) said that it has filed a breach of contract lawsuit against Valeant Pharmaceuticals International, Inc (VRX, VRX.TO) in the Supreme Court of British Columbia.

QLT alleged that Valeant has failed to pay the $5 Million laser earn-out milestone required under the terms of its 2012 Asset Purchase Agreement with Valeant.

QLT said it seeks to recover damages of $5 Million and also claims failure of Valeant to use commercially reasonable efforts to promptly obtain laser registrations for the Qcellus laser in the United States.

As per the Asset Purchase Agreement, Valeant purchased QLT's pharmaceutical drug, Visudyne, and also QLT's assets and rights in its Qcellus laser under development. Valeant agreed to use commercially reasonable efforts to promptly obtain the laser registrations necessary to commercialize the Qcellus laser in the United States.

Under the Asset Purchase Agreement, receipt of the laser registrations by December 31, 2013 triggered a $5 Million milestone payment and receipt of the laser registrations between January 1, 2014 and January 1, 2015 triggered a $2.5 Million milestone payment.

In September 2013, the supplemental Premarket Approval for the Qcellus laser in the United States was received, which QLT alleges triggered the $5 Million milestone.aleant has refused to pay the $5 Million.