|
Exhibit
10.4
EXECUTION
COPY
OPTION AND LICENSE
AGREEMENT
This OPTION AND LICENSE
AGREEMENT (this “ Agreement ”), dated as of
March 24, 2004 (the “ Effective Date ”), is made
by and between Barr Laboratories, Inc., a corporation organized and
existing under the laws of Delaware (“ Barr ”),
and Galen (Chemicals) Limited, a company organized and existing
under the laws of the Republic of Ireland (“ Galen
”). Barr and Galen are each sometimes referred to
individually as a “ Party ” and together as the
“ Parties .”
RECITALS
WHEREAS, Barr and Galen are
pharmaceutical companies engaged in the marketing and sale of
pharmaceutical products, including women’s health products;
and
WHEREAS, Barr owns or
controls certain product registrations (or applications therefor)
and know-how related to the Licensed Products (as defined below);
and
WHEREAS, Galen desires to
obtain from Barr, and Barr desires to grant to Galen, an option to
acquire, and upon exercise of such option a license to, certain
exclusive and nonexclusive rights under the Approved ANDAs (as
defined below) to commercialize the Licensed Products in the
Territory (as defined below), upon the terms and subject to the
conditions of this Agreement; and
WHEREAS, in the event that
Galen exercises the option, Barr desires to supply to Galen, and
Galen desires to obtain exclusively from Barr, all of Galen’s
requirements of Licensed Product for the Territory, upon the terms
and subject to the conditions of the Supply Agreement (defined
below);
NOW, THEREFORE, in
consideration of the foregoing premises and the representations,
covenants and agreements contained herein, the Parties, intending
to be legally bound, hereby agree as follows:
ARTICLE 1
DEFINITIONS
When used in this Agreement,
whether in the singular or plural, each of the following
capitalized terms shall have the meanings set forth in this Article
1:
1.1 “ 21-Day
ANDA ” means the Abbreviated New Drug Application number
76-198, which references the product approved under New Drug
Application 18-127, filed with the FDA by Barr in order to obtain
approval to commence sale of the 21-Day Licensed Product (and any
supplement or amendment filed pursuant to FDA
requirements).
1.2 “ 28-Day
ANDA ” means the Abbreviated New Drug Application number
76-238, which references the product approved under New Drug
Application 17-716, filed with the FDA by Barr in order to obtain
approval to commence sale of the 28-Day Licensed Product (and any
supplement or amendment filed pursuant to FDA
requirements).
1.3 “ 21-Day
Licensed Product ” means 0.4 mg. norethindrone/.035 mg.
ethinyl estradiol 21-day oral tablet, described in, and the sale of
which is or will be permitted in the Territory by, the 21-Day ANDA
(to the extent the 21-Day ANDA is or becomes an Approved
ANDA).
1.4 “ 28-Day
Licensed Product ” means 0.4 mg. norethindrone/.035 mg.
ethinyl estradiol 28-day oral tablet, described in, and the sale of
which is or will be permitted in the Territory by, the 28-Day ANDA
(to the extent the 28-Day ANDA is or becomes an Approved
ANDA).
1.5 “ Affiliates
” means, with respect to a Party, any Person that directly or
indirectly, through one or more intermediaries, controls, is
controlled by, or is under common control with, such Party at any
time during the period for which the determination of affiliation
is being made. For the purposes of this definition, “
control ” (including the terms “ controlled
by ” and “ under common control with
”) means the possession, directly or indirectly, of the power
to direct or cause the direction of the management, policies or
affairs of a Person, whether through ownership of voting securities
or general partnership or managing member interests, by contract or
otherwise, including the ownership, directly or indirectly, of
securities having the power to elect a majority of the board of
directors or similar body governing the affairs of such Person.
Without limiting the generality of the foregoing, a Person shall be
deemed to control any other Person in which it owns, directly or
indirectly, a majority of the voting interests.
1.6 “ ANDAs
” means collectively or either, as the case may be, the
21-Day ANDA and the 28-Day ANDA.
1.7 “ Applicable
Law ” means all applicable laws, statutes, ordinances,
rules, regulations (including cGMPs (defined below)), writs,
judgments, decrees, injunctions (whether preliminary or final),
orders and other requirements (including Abbreviated New Drug
Applications, permits, certificates and other product
authorizations and approvals) of any Governmental Authority
(including the FTC and FDA or any self-regulatory organization or
stock exchange).
1.8 “A pproved
ANDA ” means any of the ANDAs that has been approved by
the FDA.
1.9 “ Business
Day ” means any day other than a Saturday, Sunday or day
on which banks in New York, New York are authorized or obligated by
Applicable Law to close. Any reference in this Agreement to
“day” whether or not capitalized shall refer to a
calendar day, not a Business Day.
1.10 “ cGMPs
” means current Good Manufacturing Practices (as set forth in
C.F.R. Parts 210 and 211)
1.11 “ CMC
Section ” means the Chemistry, Manufacturing and Controls
Section of a regulatory submission document included in an ANDA as
set forth in 21 C.F.R. §314.94(a)(9).
- 2 -
1.12 “ Damages
” means any and all costs, losses, claims, liabilities,
fines, penalties, awards, verdicts, settlements, judgments,
interests and expenses, including reasonable attorney’s fees
and costs of suit.
1.13 “ FDA
” means the United States Food and Drug Administration, or
any successor agency thereof.
1.14 “ FTC
” means the United States Federal Trade Commission, or any
successor agency thereof.
1.15 “ Force
Majeure ” means any occurrence beyond the reasonable
control of a Party that prevents or substantially interferes with
the performance by the Party of any of its obligations hereunder,
if such occurs by reason of any act of God, flood, fire, explosion,
earthquake, strike, lockout, labor dispute, casualty, accident,
war, revolution, civil disorder, terrorist attack, embargo, any
restriction of any Governmental Authority (to the extent such
Governmental Authority has ruling authority over such Party), or
other similar event beyond the reasonable control of such Party, if
and only if the Party affected shall have used commercially
reasonable efforts to avoid such occurrence.
1.16 “ Governmental
Authority ” means any governmental, regulatory or
administrative authority, court, tribunal, arbitrator, agency,
commission, official or other instrumentality of any supranational
authority or any federal, state, provincial, municipal, county,
city or other political subdivisions thereof.
1.17 “ HSR Act
” means the Hart-Scott-Rodino Antitrust Improvements Act of
1976, Section 7A of the Clayton Act, 15 USC §18A, as
amended.
1.18 “ Know-How
” means any technical information (whether patented,
patentable or otherwise), including all product specifications,
processes, product designs, plans, trade secrets, ideas, concepts,
manufacturing, engineering and other manuals and drawings, standard
operating procedures, flow diagrams, chemical, pharmacological,
toxicological, pharmaceutical, physical and analytical, safety,
efficacy, stability, quality assurance, quality control and
clinical data, data, research records, compositions, annual product
reviews, process validation reports, analytical method validation
reports, specifications for stability trending and process
controls, testing and reference standards for impurities in and
degradation of products, technical data packages, chemical and
physical characterizations, dissolution test methods and results,
formulations for administration, clinical trial reports, regulatory
communications and labeling and all other confidential or
proprietary technical and business information, relating to the
Licensed Products, whether written or oral and in whatever format
kept.
1.19 “ Licensed
Products ” means the 21-Day Licensed Product and the
28-Day Licensed Product.
1.20 “ NDC
” means the “National Drug Code” identifying
number for a Licensed Product maintained by the FDA, which is an
11-digit number comprised of the labeler code (which is assigned by
the FDA and identifies the establishment/manufacturer), product
(which identifies the specific product or formulation), and package
size code.
- 3 -
1.21 “ Person
” or “ person ” means any individual,
firm, corporation, partnership, limited liability company, trust,
joint venture, Governmental Authority, or other entity or
organization.
1.22 “ Promotional
Materials ” means Galen’s promotional and
advertising materials and programs relating to Finished Product
sold under the Ovcon ® trademark.
1.23 “ Supply
Agreement ” means the Finished Product Supply Agreement
attached hereto as Exhibit A , dated as of the date hereof
and effective in accordance with the terms set forth
therein.
1.24 “ Term
” means the Option Term and the License Term, as the same may
be earlier terminated in accordance with this Agreement.
1.25 “ Territory
” means the United States and its states, territories and
possessions, including the Commonwealth of Puerto Rico and the
District of Columbia.
1.26 “ Third
Party ” means any Person other than Barr, Galen and their
respective Affiliates.
ARTICLE 2
OPTION
2.1 Grant of Option .
Barr hereby grants to Galen, and Galen accepts from Barr, an
exclusive, non-transferable (except as set forth in Section 3.2
and/or Section 9.6), irrevocable option (the “ Option
”) to acquire the licenses set forth in Section 3.1
(collectively, the “ Licenses ”), upon exercise
in the manner described in Section 2.5. Barr shall not execute any
agreements (including an agreement in principle or an option,
contingent or future agreement) with an Affiliate or Third Party to
exercise, or may not itself exercise, any rights in conflict with
Galen’s rights in this Article 2. Barr may not sell, transfer
or license the Approved ANDAs during the First License Term without
Galen’s prior written consent, which shall not be
unreasonably withheld, conditioned or delayed; provided ,
that Barr may sell, transfer or license the Approved ANDAs during
the First License Term without such consent (a) to any Affiliate of
Barr, provided, no such assignment shall relieve Barr of its
obligations hereunder, or (b) in connection with a merger,
reorganization, change of control, or sale of all or substantially
all of Barr’s business to which this Agreement relates;
provided, further , that, notwithstanding anything in this
Section 2.1 to the contrary, any permitted sale, transfer or
license of the Approved ANDAs hereunder shall be expressly subject
to Galen’s rights hereunder and any such transferee shall
expressly agree to assume Barr’s obligations
hereunder.
2.2 Payment for Option
. On the Effective Date, Galen shall pay to Barr the non-refundable
sum of One Million U.S. Dollars ($1,000,000) in immediately
available funds by wire transfer to the credit of such bank account
as designated by Barr in Schedule 2.2 .
2.3 Deliveries on the
Effective Date .
(a) On the Effective Date,
Galen will deliver or cause to be delivered to Barr:
(i) a duly executed Supply
Agreement;
- 4 -
(ii) a guarantee, duly
executed by Galen Holdings PLC, in the form attached hereto as
Exhibit B ; and
(iii) any other agreements or
documents reasonably necessary to consummate the transactions
contemplated hereby, in form and substance reasonably satisfactory
to Barr.
(b) On the Effective Date,
Barr will deliver or cause to be delivered to Galen:
(i) a duly executed Supply
Agreement;
(ii) a guarantee, duly
executed by Barr Pharmaceuticals, Inc., in the form attached hereto
as Exhibit C ; and
(iii) any other agreements or
documents reasonably necessary to consummate the transactions
contemplated hereby, in form and substance reasonably satisfactory
to Galen.
2.4 Option Term . The
Option may be exercised at any time during the period (such period,
the “ Option Term ”) commencing on the date that
Galen receives notification from Barr that Barr has received the
first notice from the FDA that an ANDA has become an Approved ANDA,
and ending at 11:59 P.M., Eastern Standard Time on the forty-fifth
(45 th ) day thereafter. Barr shall notify Galen in
writing of its receipt of such notifications and as to the
commencement of the Option Term as provided herein within three (3)
Business Days following such receipt.
2.5 Exercise of Option
. To exercise the Option, Galen shall deliver to Barr during the
Option Term (a) a written notice, given in accordance with Section
9.5, indicating Galen’s election to exercise the Option and
acquire the Licenses subject to the terms and conditions of this
Agreement (the “ Exercise Notice ”) and (b) the
Exercise Payment, in accordance with Section 2.6 (the date on which
Barr has received all of the foregoing, the “ Exercise
Date ”). For avoidance of doubt, notwithstanding that
only one of the ANDAs becomes an Approved ANDA during the Option
Term, the exercise of the Option shall be as to both ANDAs and the
Licenses will be effective as to the second ANDA (and the Licensed
Product related thereto) if and when such second ANDA shall become
an Approved ANDA, immediately upon Barr’s receipt of written
notice of such approval and without further action by either Party.
Barr shall promptly notify Galen in writing as to Barr’s
receipt of such second approval.
2.6 Events Upon
Exercise .
(a) On or before the Exercise
Date, Galen shall pay to Barr the non-refundable sum of Nineteen
Million U.S. Dollars ($19,000,000) in immediately available funds
by wire transfer to the credit of such bank account as designated
by Barr in Schedule 2.2 (the “ Exercise
Payment ”) in respect of the Licenses granted
herein.
(b) On the Exercise Date, (i)
the Licenses shall be deemed immediately granted as of such date
and fully-paid and (ii) the Supply Agreement shall become
effective.
- 5 -
ARTICLE 3
LICENSES
3.1 License Grant
.
(a) Subject to the exercise
of the Option and the other terms and conditions herein, Barr
hereby grants to Galen an exclusive (including with respect to Barr
and its Affiliates), fully-paid license under each Approved ANDA
solely for the purposes of (i) marketing, having marketed, using,
having used, commercializing, have commercialized, distributing,
having distributed, offering for sale, selling and having sold the
Licensed Products in the Territory and (ii) importing or exporting,
or having imported or exported the Licensed Products solely for the
purposes of clause (i), for a period commencing on the Exercise
Date and ending at 11:59 p.m., Eastern Time, on the fifth (5th)
anniversary thereof (the “ First License Term
”).
(b) At Galen’s
election, the First License Term may be renewed on a non-exclusive
basis, for a period commencing on the day immediately following the
expiration of the First License Term and ending on the fifth (5th)
anniversary of the date such period began (the “ Second
License Term ” and together with the First License Term,
the “ License Term ”), by written notice given
to Barr at least six (6) months prior to the expiration of the
First License Term.
(c) For purposes of clarity,
the foregoing license does not grant to Galen or its sublicensees
any right (i) to market, have marketed, commercialize, have
commercialized, offer for sale, sell or have sold a Licensed
Product outside of the Territory or (ii) to make or have made a
Licensed Product anywhere in the world, except through Barr
pursuant to, or as contemplated by Section 11.3, Schedule 11.3 and
Section 12.3 of, the Supply Agreement.
3.2 Sublicenses and
Subcontracting . Notwithstanding anything herein to the
contrary, including Section 9.6, Galen may grant sublicenses in
order to exercise its rights and carry out its obligations under
this Agreement: (a) to its Affiliates, without the prior written
consent of Barr; and (b) to third Persons, with Barr’s prior
written consent, which consent shall not be unreasonably withheld,
conditioned or delayed. Galen acknowledges that the grant of a
sublicense or use of a subcontractor shall not relieve Galen from,
and Galen shall remain responsible for, all of its obligations
under this Agreement. Galen shall be responsible for the compliance
of its Affiliates, sublicensees and subcontractors (other than
Barr) with this Agreement.
3.3 Exclusivity .
During the First License Term, except as provided in the Supply
Agreement, neither Barr nor its Affiliates shall, either itself or
with or through a Third Party, (a) market, commercialize,
distribute or sell a Licensed Product in the Territory or (b)
import or export a Licensed Product for the purposes of clause
(a).
3.4 No Implied
Licenses . Only the licenses expressly granted herein shall be
of legal force and effect. No license rights shall be created
hereunder by implication, estoppel or otherwise.
- 6 -
3.5 Reservation of
Rights .
(a) All rights not expressly
granted to Galen hereunder are expressly reserved to Barr. Without
limiting the foregoing, Barr may, at its discretion, (i) research,
have researched, develop, have developed, make or have made, or,
subject to Section 3.3, use or have used Licensed Products anywhere
in the world at any time, (ii) (A) market, have marketed,
commercialize, have commercialized, distribute, have distributed,
offer for sale, sell and have sold Licensed Products outside the
Territory at any time or (B) import or export, and have imported or
exported Licensed products for the purposes of clause (A), and
(iii) market, have marketed, commercialize, have commercialized,
distribute, have distributed, offer for sale, sell and have sold,
import or export, and have imported or exported Licensed Products
within or outside the Territory after the expiration of the First
License Term.
(b) Barr shall use its
commercially reasonable efforts to ensure that Licensed Products
(or their ex-Territorial equivalents) sold by it or on its behalf
outside the Territory are not transferred to or resold in the
Territory, except by Galen. In the event Barr learns of any such
activities, it shall cease sales of such products to the offending
third party until adequate controls are instituted to arrest such
offending sales. Galen shall use its commercially reasonable
efforts to ensure that Licensed Products sold by it or on its
behalf within the Territory are not transferred to or resold
outside the Territory, except by Barr. In the event Galen learns of
any such activities, it shall cease sales of such Licensed Products
to the offending third party until adequate controls are instituted
to arrest such offending sales.
(c) As between the Parties,
Barr shall retain ownership of all rights, title and interest in
and to the ANDAs, subject to the licenses granted hereunder. Galen
shall not contest such ownership or the validity of the ANDAs with
respect to the Licensed Products, including in any
Proceeding.
3.6 Inventions . As
between the Parties, each Party shall be the sole and exclusive
owner of any Know-How that it (or an Affiliate or Third Party on
its behalf) invents, develops, discovers or creates after the
Effective Date (“ Inventions ”). Nothing herein
shall obligate either Party to invent, develop, discover or create
any Inventions or to file, prosecute, defend or maintain any
applications, registrations or patents relating to any of its
Inventions. No Inventions of a Party will be made available to the
other Party or deemed licensed to the other Party
hereunder.
ARTICLE 4
REGULATORY
MATTERS
4.1 Responsibility for the
ANDAs .
(a) Barr shall maintain the
ANDAs in compliance with all material requirements under Applicable
Law. Where Barr may lawfully do so, Barr will provide Galen, upon
written request after reasonable notice from Galen, with access to
copies of all filings submitted by Barr to the FDA in respect of
either of the ANDAs. Upon the reasonable request of Barr during the
Term, Galen shall as promptly as practicable provide to Barr all
such information in its possession or control relating to any
Licensed Product as may be reasonably required for the
- 7 -
foregoing regulatory
activities, including sales distribution information relating to
the Licensed Products, and otherwise shall provide reasonable
assistance to Barr in (i) complying with all Applicable Law and
other regulatory obligations in the Territory, including safety
updates, amendments, annual reports, pharmacovigilance filings,
investigator notifications, manufacturing facility inspections and
certifications and product approvals and (ii) preparing the CMC
Section of the ANDAs adequate to meet FDA standards with respect to
CMC requirements. Neither Party shall at any time knowingly do,
cause to be done, or omit or permit any act inconsistent with any
such ANDAs.
(b) (i) Except as otherwise
expressly provided in this Section 4.1, Barr shall be solely
responsible for paying all costs and expenses in connection with
managing and maintaining the ANDAs; (ii) Barr shall keep Galen
informed on a timely basis as to any developments in respect of the
ANDAs that would affect Galen, including all notices received from
any Governmental Authority in connection with the ANDAs that would
affect Galen; and (iii) Barr shall have the final decision-making
authority in every matter in connection with the ANDAs and on
whether and how to communicate with Governmental Authorities in
connection therewith; provided that (x) Barr will not,
except where required by Applicable Law or Governmental Authority,
as required or permitted under this Agreement, or as consented to
in writing by Galen from time to time, supplement, amend or
otherwise alter either of the ANDAs so as to materially and
adversely affect the rights granted to Galen hereunder, (y) Barr
shall provide Galen with copies of all material correspondence to
and from the FDA or other Governmental Authorities in the
Territory, and (z) Barr will consult with Galen before taking any
action in connection with either of the ANDAs that would adversely
affect Galen (including any Recall of Licensed Products as
contemplated by Section 4.4) and consider in good faith
Galen’s position; provided that Barr shall have final
decision-making authority as contemplated in clause (iii)
above.
(c) In the event Barr
materially breaches any of the provisions of this Section 4.1,
notwithstanding anything herein to the contrary, in addition to any
other rights and remedies to which Galen may be entitled, Galen may
elect not to terminate this Agreement pursuant to Section 8.2(b),
and instead to require Barr to appoint Galen as its exclusive agent
with respect to all approvals and filings in the Territory in
connection with the Licensed Products, and, accordingly, to
promptly take all steps necessary to effect the foregoing
appointment, including writing a letter to the appropriate
Governmental Authorities in the Territory. In such event, as
Barr’s agent, Galen shall, except as prohibited by Applicable
Law, be the lead regulatory party in the Territory, and the rights
and obligations of each Party under Sections 4.1, 4.4, 4.5, 4.6 and
4.7 shall, as appropriate, become the rights and obligations of the
other Party; provided , that the rights provided by
4.1(b)(iii) shall remain vested in Barr, as the ANDA
holder.
(d) Except as required by
Applicable Law, as may be authorized by Barr from time to time or
pursuant to clause (c) above, and subject to clause b(iii) above,
during the Term, Galen shall not communicate directly with the FDA
or any other Governmental Authority in the Territory relating to
the ANDAs without the prior written consent of Barr, such consent
not to be unreasonably withheld, conditioned or delayed. In
furtherance thereof, Galen shall as promptly as practicable refer
all FDA communications received by Galen during the Term relating
to any Licensed Product to Barr.
- 8 -
(e) Barr shall not be liable
to Galen for Losses incurred by Galen as a direct or indirect
result of Galen’s failure to provide information under this
Section 4.1.
(f) Barr or its relevant
Affiliate may, without the consent of Galen, use or cross-reference
the Approved ANDAs in connection with (i) manufacturing Licensed
Products under the Supply Agreement or (ii) manufacturing anywhere
in the world of any Licensed Product for the marketing,
distribution or sale of such product outside the
Territory.
4.2 Promotional
Materials . Galen shall be solely responsible for ensuring that
all Promotional Materials comply with the applicable labeling and
ANDAs for a given Licensed Product and with Applicable Law.
Notwithstanding Section 4.1(d), Galen shall be solely responsible
for submitting all Promotional Materials to the FDA for review and
for negotiating with the FDA for approvals of such Promotional
Materials; provided that Barr has submitted to the FDA such
authorization as may be required by Applicable Law for Galen to
submit such Promotional Materials (which Barr will use its
commercially reasonable efforts to effect as promptly as reasonably
practicable after the Exercise Date; and until such time as such
authorizations have been effected, Barr shall use its commercially
reasonable efforts to submit all Promotional Materials as required
hereunder on behalf of Galen).
4.3 Regulatory Matters
Outside the Territory . In the event that a Governmental
Authority outside of the Territory in a country where Barr is
developing Licensed Products (or, for all purposes of this Section
4.3, their extra-Territorial equivalents) requests that Barr
provide it with information within Galen’s possession and
such information is not otherwise in Barr’s possession, upon
Barr’s reasonable request, Galen will as promptly as
practicable make available to Barr such tangible written
information in Galen’s possession and control that is
requested by such Governmental Authority. Notwithstanding the
foregoing, Galen may instead agree, in its sole discretion, to
provide such information directly to the applicable Governmental
Authority, as the case may be, or to an independent Third Party of
its choosing, and shall respond directly (or through its
independent agent) to any questions or inquiries from such
Governmental Authority regarding the information. In addition,
Galen shall have no duty to disclose any of its proprietary or
confidential information to any Governmental Authority or any other
party, unless the Governmental Authority in question provides for
the protection of such proprietary or confidential information from
disclosure in a manner substantially similar to that provided by
the FDA, and Barr shall provide such cooperation reasonably
requested by Galen to assist Galen in receiving such protection.
Barr shall reimburse Galen for the out-of-pocket costs and expenses
incurred by Galen in complying with any such requests. Galen shall
endeavor in good faith to cooperate and comply with any requests
from Barr or from any Governmental Authority pursuant to this
Section 4.3.
4.4 Recalls
.
(a) In the event that either
Party obtains information that a Licensed Product or any portion
thereof should be alleged or proven not to meet the specifications,
labeling, or Approved ANDA for such Licensed Product or to be
otherwise defective in the Territory, such Party shall notify the
other Party immediately and both Parties shall cooperate fully
regarding the investigation and disposition of any such matter,
including with respect to any Licensed Product recall, Licensed
Product withdrawal or filed correction, as appropriate
(collectively, a “ Recall ”).
- 9 -
Barr and Galen shall each
maintain such traceability records as are sufficient and as may be
necessary to permit a Recall or field correction of any Licensed
Products. In the event (i) any applicable Governmental Authority
should issue a request, directive or order that a Licensed Product
be Recalled or (ii) either Party determines that any Licensed
Product already in interstate commerce in the Territory presents a
risk of injury or gross deception or is otherwise defective and
that a Recall of such Licensed Product is appropriate, each Party
shall give telephonic notice (to be confirmed in writing) to the
other within 24 hours of the occurrence of such event.
(b) During (i) the First
License Term and (ii) the Second License Term for so long as Galen
is the only Person commercializing Licensed Products, Galen shall
consult with Barr, but Galen shall have sole responsibility, in its
reasonable discretion (but subject to the superseding rights of
Barr as the ANDA holder to have the final say pursuant to Section
4.1), for determining all corrective action to be taken (including
a Recall) and for carrying out the Recall, if any, which shall be
conducted in its own name. Barr will provide reasonable cooperation
and assistance to Galen upon request in connection therewith. Barr
shall be responsible for all costs and expenses of any such Recall
(including any reasonable out-of-pocket costs incurred by Galen in
connection with such cooperation) where Barr supplied such product
under the Supply Agreement, except to the extent such Recall is
attributable to Galen’s (or its designees’,
subcontractors’ or Affiliates’) breach of their
respective obligations or representations or warranties under this
Agreement or the Supply Agreement. Where Galen has elected to
assume the manufacturing of the Licensed Product under Section 11.3
of the Supply Agreement and the product subject to such Recall is
manufactured by Galen, Galen shall be responsible for all costs and
expenses of any such Recall (including any reasonable out-of-pocket
costs incurred by Barr in connection with any cooperation it
provides hereunder). Commencing during the Second License Term on
the date, if any, that Galen is not the only Person commercializing
Licensed Products, Barr shall have sole responsibility, in its
reasonable discretion, for determining all corrective action to be
taken (including a Recall) and for carrying out the Recall, if any,
which shall be conducted in its own name. Galen will provide
reasonable cooperation and assistance to Barr upon request in
connection therewith. Barr shall be responsible for all costs and
expenses of any such Recall (including any reasonable out-of-pocket
costs incurred by Galen in connection with such cooperation),
except to the extent such Recall is attributable to Galen’s
(or its designees’, subcontractors’ or
Affiliates’) breach of their respective obligations or
representations or warranties under this Agreement or the Supply
Agreement.
4.5 Adverse Experience
. For so long as there is unexpired Licensed Product manufactured
under an Approved ANDA in Galen’s inventory, at its
wholesalers or their retailers, each Party shall promptly notify
the other Party of any
|