| Burgdorf, 21.12.2018, 07:00 a.m. – No agreement has been reached between Ypsomed and Insulet Corp., its former supplier of Omnipod® devices on the amount of the expiration fee payable to Ypsomed under the terms of the distribution agreement that expired in June 2018. After unsuccessful attempts to amicably agree on the amount, Ypsomed has decided to file for arbitration. Ypsomed continues to estimate the expiration fee to amount to approximately CHF 50 million. | Under the terms of the distribution agreement with Insulet for Omnipod® devices which expired on June 30, 2018, Ypsomed is entitled to an expiration fee. The amount depends on the number of Omnipod® deliveries to existing customers in the 12 months after expiration of the distribution agreement. As communicated in the semiannual report 2018/19, Ypsomed estimates this compensation payment to amount to approximately CHF 50 million, assuming continued supply to existing customers and limited attrition. After the expiration of the agreement, the parties held talks to jointly determine and agree on the amount of the expiration fee. Such talks have been unsuccessful and Ypsomed has decided to initiate arbitration proceedings as provided in the distribution agreement.
Ypsomed is confident of its position and determined to enforce its rights in arbitration. Ypsomed does not expect any effects on operative results from the dispute. | | Download: Press Release as PDF |
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