CERTAIN CONFIDENTIAL INFORMATION
CONTAINED IN
THIS DOCUMENT, MARKED BY BRACKETS, HAS BEEN
OMITTED AND FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION PURSUANT TO
RULE 24B-2 OF THE SECURITIES EXCHANGE
ACT OF 1934, AS AMENDED
This
Supply Agreement (the “Agreement” ) is made and
entered into effective as of December 19, 2005 (the
“Effective Date” ) by and between GPC Biotech
AG, a German corporation, having its place of business at
Fraunhoferstrasse 20, 82152 Martinsried/Munich, Germany
(“GPC Biotech” ); and Pharmion GmbH, a Swiss
limited liability company and wholly-owned subsidiary of Pharmion
Corporation, a Delaware corporation, having a place of business at
Aeschenvorstadt 71, 4051 Basel, Switzerland (
“Licensee” ). GPC Biotech and Licensee are
sometimes referred to herein individually as a “ Party
” and collectively as the “ Parties
.”
WHEREAS , the Parties have entered into a Co-Development and
License Agreement of even date herewith (the “ License
Agreement ”), pursuant to which GPC Biotech grants a
license to Licensee, and Licensee obtains a license, to Develop and
Commercialize the Licensed Product (each as defined therein);
and
WHEREAS , in accordance with the terms of the License
Agreement, the Parties are required to enter into an agreement
providing for the supply by GPC Biotech to Licensee of all of
Licensee’s requirements of the Licensed Product;
and
WHEREAS , GPC Biotech desires to supply the Licensed Product
to Licensee, and Licensee desires to purchase the Licensed Product,
all on the terms and conditions set forth below.
NOW, THEREFORE , in consideration of the foregoing premises,
the mutual promises and covenants of the Parties contained herein
and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties hereto,
intending to be legally bound, do hereby agree as
follows:
DEFINITIONS
Unless
otherwise specifically provided herein, the following terms shall
have the following meanings:
1.1 “Affiliate” shall mean, 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. For purposes of this definition,
“control” and, with correlative meanings, the terms
“controlled by” and “under common control
with” shall mean (a) the possession, directly or
indirectly, of the power to direct the management or policies of a
business entity, whether through the ownership of voting
securities, by contract relating to voting rights or corporate
governance, or otherwise, or (b) the ownership, directly or
indirectly, of at least fifty percent (50%) of the voting
securities or other ownership interest of a business entity (or,
with respect to a limited partnership or other similar entity, its
general partner or controlling entity).
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1.2 “Agreement” shall have the meaning set forth
in the preamble to this Agreement.
1.3 “API” shall mean the Licensed Compound as
defined in the License Agreement.
1.4 “API Facility” shall mean the Manufacturing
facility of the API Subcontractor.
1.5 “API Subcontractor” shall mean, as of the
Effective Date, Johnson Matthey Inc. or any other Person appointed
by GPC Biotech thereafter and approved by Licensee in writing to
supply API, which approval shall not be unreasonably withheld or
delayed.
1.6 “Applicable Law” shall mean applicable laws,
rules and regulations, including any rules, regulations, guidelines
or other requirements of the Regulatory Authorities, that may be in
effect from time to time.
1.7 “Arbitration Rules” shall have the meaning
set forth in Section 9.11.2.
1.8 “Breaching Party” shall have the meaning set
forth in Section 8.2.
1.9 “Business Day” shall mean a day other than a
Saturday or Sunday on which banking institutions in Munich, Germany
are open for business.
1.10 “Calendar Quarter” shall mean each
successive period of three (3) calendar months commencing on
January 1, April 1, July 1 and October 1.
1.11 “Calendar Year” shall mean each successive
period of twelve (12) calendar months commencing on January 1
and ending on December 31.
1.12 “ cGMP ” shall mean (a) the
current good manufacturing practices for the methods used in, and
the facilities and controls used for, the Manufacture of the
Licensed Product promulgated by any Regulatory Authority including,
without limitation, US cGMP, the EU Good Manufacturing Guidelines,
the International Conference on Harmonization Guidelines and any
other applicable laws, guidelines and/or regulations, together with
the latest FDA and other applicable guidance documents pertaining
to manufacturing and quality control practice, all as updated,
amended and revised from time to time.
1.13 “Claims” shall have the meaning set forth
in Section 7.1.
1.14 “CMC Sections” shall mean the Chemistry,
Manufacturing and Controls sections of any Regulatory
Documentation, including all information included
therein.
1.15 “Complaining Party” shall have the meaning
set forth in Section 8.2.
1.16 “Dispute” shall have the meaning set forth
in Section 9.11.1.
1.17 “Distributor” shall have the meaning set
forth in the License Agreement.
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1.18 “Drug Master File” shall have the meaning
set forth in the License Agreement.
1.19 “Effective Date” shall mean the effective
date of this Agreement as set forth in the preamble to this
Agreement.
1.20 “Exploitation” shall have the meaning set
forth in the License Agreement.
1.21 “Facilities” shall mean (a) the API
Facility, (b) the Finishing Facility, and (c) any
Manufacturing facility of GPC Biotech or its Affiliates.
1.22 “FDA” shall mean the United States Food and
Drug Administration and any successor agency thereto.
1.23 “FFDCA” shall mean the United States
Federal Food, Drug, and Cosmetic Act, as amended from time to
time.
1.24 “Finishing Facility ” shall mean the
Manufacturing facility of the Finishing Subcontractor or the
Manufacturing facility of GPC Biotech or its Affiliate, as
determined by GPC Biotech.
1.25 “Finishing Subcontractor” shall mean, as of
the Effective Date, [...***...] , or any other Person
appointed by GPC Biotech thereafter to supply Licensed Product in
bulk capsule form, and approved by Licensee in writing, which
approval shall not be unreasonably withheld or delayed.
1.26 “ Forecast(s) ” shall have the
meaning set forth in Section 2.2.1.
1.27 “Full Product Batch” shall mean a specific
quantity of Licensed Product equal to approximately 480,000 units
comprised of approximately [...***...] units of
[...***...] capsules and approximately [...***...]
units of [...***...] capsules.
1.28 “GPC Biotech” shall have the meaning set
forth in the preamble to this Agreement.
1.29 “ Indemnification Claim Notice ”
shall have the meaning set forth in Section 7.3.
1.30 “ Indemnified Party ” shall have the
meaning set forth in Section 7.3.
1.31 “Initial Forecast” shall have the meaning
set forth in Section 2.2.1.
1.32 “Joint Manufacturing Committee” or
“JMC” shall have the meaning set forth in
Section 2.1.4.
1.33 “License Agreement” shall have the meaning
set forth in the first recital to this Agreement.
***
Confidential Treatment Requested
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1.34 “Licensed Product” shall mean the
“Licensed Product” as defined in the License Agreement
that has been Manufactured by or on behalf of GPC Biotech and
delivered to Licensee pursuant to the terms of this
Agreement.
1.35 “Licensee” shall have the meaning set forth
in the preamble to this Agreement.
1.36 “Licensee Territory” shall have the meaning
set forth in the License Agreement.
1.37 “Losses” shall have the meaning set forth
in Section 7.1.
1.38 “Major Market Country” shall have the
meaning set forth in the License Agreement.
1.39 “Manufacturing” shall mean all activities,
steps and processes relating to the production, manufacture,
processing and holding of the Licensed Product or any intermediate
thereof, including stability testing, quality assurance and quality
control. The terms “ Manufacture ” and “
Manufactured ” refer to the act of
Manufacturing.
1.40 “Manufacturing Cost” shall have the meaning
set forth in the License Agreement.
1.41 “Manufacturing Process” shall mean any
process or step thereof that is necessary or useful for
Manufacturing the Licensed Product or any intermediate thereof as
evidenced in the batch records or master batch records.
1.42 “Materials” shall mean all raw materials,
excipients, and containers required in connection with the
Manufacture of the Licensed Product, excluding API.
1.43 “Notice Period” shall have the meaning set
forth in Section 8.2.
1.44 “Party” and “Parties”
shall have the meaning set forth in the preamble to this
Agreement.
1.45 “ Permits ” shall have the meaning
set forth in Section 6.1.1.
1.46 “Person” shall mean an individual, sole
proprietorship, partnership, limited partnership, limited liability
partnership, corporation, limited liability company, business
trust, joint stock company, trust, unincorporated association,
joint venture or other similar entity or organization, including a
government or political subdivision, department or agency of a
government.
1.47 “ Purchase Order ” shall mean a
written purchase order submitted by Licensee to GPC Biotech in
accordance with Section 2.2.2.
1.48 “Quality Agreement” shall mean the quality
assurance agreement between the Parties to be agreed upon within
ninety (90) days of the Effective Date.
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1.49 “Regulatory Authority” shall mean any
applicable supra-national, federal, national, regional, state,
provincial or local regulatory agencies, departments, bureaus,
commissions, councils or other government entities regulating or
otherwise exercising authority with respect to the Exploitation of
the Licensed Product in the Licensee Territory.
1.50 “Regulatory Documentation” shall have the
meaning set forth in the License Agreement.
1.51 “Reserve Inventory” shall have the meaning
set forth in Section 2.1.2.
1.52 “ Specifications ” shall mean the
list of tests, references to any analytical procedures and
appropriate acceptance criteria which are numerical limits, ranges
or other criteria for tests described in order to establish a set
of criteria to which Licensed Product, at any stage of Manufacture,
should conform to be considered acceptable for its intended use as
agreed to in writing by the Parties within ninety (90) days of
the Effective Date, as such specifications are amended or
supplemented from time to time in accordance with the terms hereof.
Without limiting the generality of the foregoing, the
Specifications shall be consistent with all applicable Regulatory
Documentation filed prior to the Effective Date and shall specify
that the Licensed Products, when delivered to Licensee, shall have
a minimum remaining shelf life of not less than seventy five
percent (75%) of the maximum shelf life that is available for the
Licensed Products at the time of Manufacture.
1.53 “Subcontractor” shall mean either the API
Subcontractor or the Finishing Subcontractor.
1.54 “Sublicensee” shall have the meaning set
forth in the License Agreement.
1.55 “Supply Failure” shall have the meaning set
forth in Section 8.5.
1.56 “Supply Price,” with respect to any
Licensed Product delivered hereunder, shall mean one hundred and
ten percent (110%) of the Manufacturing Costs for such Licensed
Product.
1.57 “ Term ” shall have the meaning set
forth in Section 8.1.
1.58 “Third Party” shall mean any Person other
than GPC Biotech, Licensee and their respective Affiliates and
Sublicensees.
1.59 “US cGMP” shall mean current good
manufacturing practices for the methods used in, and the facilities
and controls used for, the Manufacture of the Licensed Products,
all as set forth from time to time by the FDA pursuant to the FFDCA
and the rules and regulations promulgated thereunder (including
specifically Title 21, parts 210 and 211 of the Code of Federal
Regulations of the United States).
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SUPPLY OF PRODUCT
2.1 Purchase and Supply Obligations. Subject to the
provisions of this Agreement, during the Term Licensee shall, and
Licensee shall cause its Sublicensees to, purchase one hundred
percent (100%) of their requirements of Licensed Product in bulk
capsule form according to the Specifications for sale in the
Licensee Territory from GPC Biotech, and GPC Biotech shall
Manufacture and supply such quantities of Licensed Product to
Licensee. GPC Biotech shall not supply Licensed Products to any
Third Party within the Licensee Territory. In the event that GPC
Biotech, at any time during the Term, has reason to believe that it
or any Subcontractor will be unable to perform the services
hereunder or that there will be a material delay in performance
thereof, GPC Biotech shall (without limiting any other obligations
GPC Biotech may have or rights or remedies Licensee may have )
promptly notify Licensee thereof.
2.1.1. Subcontracting. Licensee acknowledges and agrees that
GPC Biotech may subcontract or delegate any or all of its
obligations hereunder to any Subcontractor; provided that any
change in Subcontractors requires Licensee’s prior written
consent and such subcontracting or delegation shall in no way
relieve GPC Biotech of its obligations hereunder except to the
extent that such obligations are performed by a Subcontractor. GPC
Biotech shall ensure that any Subcontractor engaged by GPC Biotech
to Manufacture Licensed Product Manufactures the Licensed Product
pursuant to the terms of this Agreement.
2.1.2. API and Materials; Reserve Inventory . GPC Biotech or
its Subcontractors shall obtain and provide all API, Materials and
equipment required to Manufacture the Licensed Products hereunder.
During the Term of this Agreement, GPC Biotech shall maintain, at
its own expense, a reserve inventory of API and capsule shells to
be used in the future Manufacturing of Licensed Products
(“Reserve Inventory”) in an amount equal to twice
Licensee’s Forecast for the then-current Calendar Quarter.
When using Reserve Inventory in order to Manufacture Licensed
Products in accordance with this Agreement, GPC Biotech and its
Subcontractors shall manage such inventory with its own inventories
of API and Materials on a “first expiry, first out”
basis to maximize shelf life and minimize spoilage. GPC Biotech
shall properly store all inventories of API and Materials
(including such Reserve Inventory) prior to use in accordance with
cGMP and the Specifications.
2.1.3. Facilities . GPC Biotech shall Manufacture all
Licensed Product hereunder only at the Facilities. GPC Biotech
shall maintain, or shall cause its Subcontractors to maintain, at
their own expense, the Facilities and all equipment required for
the Manufacture of the Licensed Product in a state of repair and
operating efficiency consistent with the requirements of cGMP and
all other Applicable Law.
6
2.1.4. Joint Manufacturing Committee. The JEC (as defined in
the License Agreement) will establish a Joint Manufacturing
Committee comprising an equal number of representatives of both
Parties (the “JMC”). The JMC shall have the overall
responsibility for overseeing the Parties’ activities with
respect to the Manufacture of Licensed Product hereunder and, in
particular, the JMC shall (a) discuss any proposed changes to
the Manufacturing Process or Specifications; (b) oversee and
coordinate regulatory activities relating to Manufacturing;
(c) oversee and establish work plans for analytical methods
transfer; (d) coordinate product supply activities; and
(e) engage in any other activities or assume any other
responsibilities delegated to it by the JEC. The JEC will establish
the meeting schedule and decision-making rules that the JMC will
follow in carrying out its responsibilities.
2.2
Forecasts and Purchase Orders.
2.2.1. Not later than ninety (90) days following the
Effective Date, Licensee shall provide GPC Biotech with a good
faith, written forecast of its anticipated requirements of the
Licensed Product and proposed delivery dates thereof for the period
beginning on the Effective Date and ending six (6) full
Calendar Quarters thereafter (“ Initial Forecast
”). Not later than thirty (30) days prior to the
beginning of the first full Calendar Quarter after the Initial
Forecast and each subsequent full Calendar Quarter of the Term,
Licensee shall submit to GPC Biotech a good faith, written forecast
of its anticipated requirements of the Licensed Product and
proposed delivery dates thereof for such Calendar Quarter and the
five (5) Calendar Quarters thereafter (such forecasts,
together with the Initial Forecast, the “ Forecasts
”) (for example, not later than thirty (30) days prior
to the Calendar Quarter that begins April 1, 2007, Licensee
shall submit a Forecast covering the period from April 1, 2007
through September 30, 2008). The quantities of Licensed
Product and delivery dates applicable to the first two
(2) Calendar Quarters in each Forecast shall constitute a
binding obligation of Licensee to purchase and of GPC Biotech to
supply such quantities and shall not be subject to change without
the prior written approval of both GPC Biotech and
Licensee.
2.2.2. Licensee shall order Licensed Product by the issuance
of Purchase Orders to GPC Biotech at least one hundred twenty
(120) days prior to the delivery date specified in each
respective Purchase Order. Each Purchase Order shall designate the
desired quantities of Licensed Product and the delivery date(s)
thereof, and each Purchase Order must be consistent with the
binding portion of the most recently delivered Forecast and shall
constitute a binding commitment by Licensee to order from GPC
Biotech and by GPC Biotech to deliver to Licensee when placed. All
Purchase Orders shall be for Full Product Batch quantities of
Licensed Product or integral multiples thereof.
2.2.3. GPC Biotech shall confirm acceptance of each Purchase
Order submitted in accordance with Section 2.2.2 within thirty
(30) days after receipt thereof and shall use commercially
reasonable efforts to deliver
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Licensed
Product against each Purchase Order in accordance with the delivery
date set forth therein.
2.2.4. Each Purchase Order shall be subject to all of the
terms and conditions of this Agreement. To the extent any terms or
provisions of a Purchase Order or the written acceptance thereof by
GPC Biotech conflict with, or are in addition to, the terms and
provisions of this Agreement, the terms and provisions of this
Agreement shall control.
2.3 Delivery Terms; Risk of Loss. GPC Biotech shall deliver
all Licensed Product Manufactured hereunder EXW (as defined in
Incoterms 2000) the Finishing Facility. Title to all Licensed
Product shall pass to Licensee at the time of delivery.
2.4 Regulatory Approvals. GPC Biotech shall, and shall cause
its Subcontractors to, permit any applicable Regulatory Authority
to inspect the Facilities and otherwise cooperate fully with such
agencies and GPC Biotech shall, and shall cause its Subcontractors
to, provide Licensee with such information and assistance as
Licensee may reasonably request in order for Licensee to comply
with the requirements of such Regulatory Authorities in regard to
the Licensed Product. The Parties further agree that GPC Biotech
shall, and shall cause its Subcontractors to, use commercially
reasonable efforts, at Licensee’s expense, to cooperate in
any registration process in the Licensee Territory undertaken by
Licensee in accordance with the License Agreement. On or prior to
the date agreed to by the Parties (in consultation with the JMC) in
connection with the Development of the Licensed Product, GPC
Biotech shall, and shall cause its Subcontractors to, at its
expense, compile and file a Drug Master File with all Regulatory
Authorities in the Major Market Countries in the Licensee Territory
that accept such filings. If any Regulatory Authorities in the
Licensee Territory do not allow for referencing Drug Master Files
for purposes of obtaining Regulatory Approval for the Licensed
Product, GPC Biotech shall, and shall cause its Subcontractors to,
provide Licensee with all information required to complete the CMC
Sections of any Regulatory Documentation required to be submitted
in the Major Market Countries in the Licensee Territory as soon as
reasonably practicable.
2.5 Change Control. GPC Biotech shall Manufacture Licensed
Product according to cGMP and the applicable Specifications. GPC
Biotech shall notify Licensee of any and all changes it proposes in
its Manufacturing (including API and Materials), Subcontractors,
Facilities, Manufacturing Process or Specifications relating to
Licensed Product. GPC Biotech or Licensee may, at any time, request
a change to the Manufacturing Process or the Specifications related
to the Licensed Product. GPC Biotech and its Subcontractors agree
to implement any change to the Manufacturing Process or
Specifications that is required by a Regulatory Authority or by
Applicable Law in the Licensee Territory. In the event of any other
request to modify the Manufacturing Process or Specifications, both
Licensee and GPC Biotech shall promptly meet to evaluate such
proposed changes including the effect of such changes on the
regulatory filings related to the Licensed Product and the costs
associated with Manufacturing. No such change shall be made without
the approval of both Parties; provided that such approval
shall not be unreasonably withheld. To the extent that any change
is required by Regulatory Authorities in both the GPC Biotech
Territory and the Licensee Territory, the costs associated with
implementing such change will be considered Collaboration Costs
under
8
the License
Agreement. The costs associated with implementing all other changes
will be the responsibility of (a) GPC Biotech, if GPC Biotech
or its Subcontractors requested the change or the change was
required by Regulatory Authorities anywhere in the GPC Biotech
Territory, or (b) Licensee, if Licensee requested the change or the
change was required by Regulatory Authorities anywhere in the
Licensee Territory.
2.6 Lot Numbers. GPC Biotech shall imprint the lot numbers
and expiration dates on Licensed Product containers, as required by
cGMP, for each Licensed Product delivered. Such lot numbers and
expiration dates shall be assigned to each lot by GPC Biotech based
on GPC Biotech’s or its Subcontractor’s standard
operating procedures.
2.7 Analytical Methods Transfer. Licensee shall be
responsible for primary and secondary packaging and release testing
for Licensed Products to be sold by Licensee in the Licensee
Territory. In accordance with a work plan and budget to be agreed
upon by Licensee and GPC Biotech, GPC Biotech shall provide
Licensee with (a) validated analytical methods and reference
standards; (b) details of the packaging materials that GPC
Biotech has used for its stability studies; and (c) technical
support required to transfer the methods to a Third Party
laboratory selected by Licensee to perform release testing of
Licensed Product provided to Licensee hereunder. The transfer of
analytical methods and other related technology hereunder shall be
under the supervision and direction of the JMC. Licensee shall pay
GPC Biotech’s actual out-of-pocket expenses in connection
with conducting the activities described in this
Section 2.7.
2.8 Licensed Product Failure and Rejection; Latent Defects.
With each delivery of Licensed Product hereunder, GPC Biotech shall
provide a Certificate of Analysis and a Certificate of Compliance,
in a form agreed to by the Parties, along with all other
documentation required pursuant to the Quality Agreement. Within
thirty (30) days following delivery to Licensee of such
Licensed Product and all such documentation, Licensee shall have
the right to give GPC Biotech notice of rejection of any batch of
Licensed Product that, in whole or part, fails to meet the
applicable Specifications at the time of delivery. Failure by
Licensee to give notice of rejection within the period set forth
above shall be deemed acceptance by it of the Licensed Product to
which the notice of rejection would have otherwise applied. GPC
Biotech retains the right of appeal to an independent laboratory as
provided in Section 2.16 of this Agreement. Notwithstanding the
foregoing, the requirement for Licensee to provide notice of
rejection within the period set forth above shall not apply to any
defect not readily discoverable by Licensee within such thirty
(30) day period. In the event of any Licensed Product with
defects not readily discoverable by Licensee within such thirty
(30) day period, notwithstanding anything to the contrary
contained herein, Licensee may reject such Licensed Product by
delivering notice of rejection to GPC Biotech no later than the
earlier of: (a) thirty (30) days after the date of
discovery of such defect or (b) expiration of the shelf life
of the Licensed Product. If Licensee fails to notify GPC Biotech of
such defect within such time period, Licensee shall be deemed to
have accepted such Licensed Product. Licensee shall promptly supply
GPC Biotech with any evidence it has that relates to whether any
Licensed Product delivered to Licensee by GPC Biotech fails to meet
the applicable Specifications.
2.9 Inspection. Licensee shall have the right, no more than
once during any Calendar Year during the Term, except for any
additional “for cause” inspections where Licensee has
been informed of quality issues at any of the Facilities, to enter
the Facilities upon
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reasonable
advance notice and during normal business hours for the purpose of
inspecting the Facilities, procedures and any relevant records
relating to the Manufacture of Licensed Product (including all
batch sheets and records for all Manufacturing steps); provided,
however, that, with respect to any audit of a
Subcontractor’s facility, Licensee agrees to enter into a
customary confidentiality agreement reasonably acceptable to such
Subcontractor prior to such audit and upon such
Subcontractor’s request; and provided further, that any
inspection of the API Facility or Finishing Facility shall be
coordinated with any inspection planned by GPC Biotech. No such
inspection shall diminish or increase GPC Biotech’s
obligations hereunder, except that GPC Biotech shall, and shall
cause its Subcontractors to, undertake to use commercially
reasonable efforts to correct promptly any deficiencies reasonably
identified by Licensee in such inspection. In the event that any
Facility used in the Manufacturing of Licensed Product hereunder is
inspected by representatives of any Regulatory Authority in
connection with the Manufacture of the Licensed Product, GPC
Biotech shall notify Licensee immediately by telephone and follow
up in writing, upon learning of such inspection, and shall promptly
supply Licensee with copies of any reports or responses prepared by
the Regulatory Authority, GPC Biotech or the applicable
Subcontractor relating to such inspection. Licensee may send
representatives to such Facility and Licensee may participate in
any portion of such inspection relating to the Licensed Product of
which GPC Biotech receives advance notice.
2.10 Manufacturing Records. GPC Biotech shall, and shall
cause its Subcontractors to, maintain adequate and accurate books
and records with respect to its and their activities hereunder,
including Manufacturing records and lot traceability records, with
respect to each Licensed Product lot delivered hereunder. These
records shall be retained until Licensee gives GPC Biotech written
consent for records to be destroyed, which consent shall not be
unreasonably withheld; provided, however , that in no event
shall records be destroyed at any time when such records are
required to be retained by Applicable Law. Notwithstanding the
foregoing, GPC Biotech shall, prior to discarding any documentation
related to the Manufacture of Licensed Product, make such
documentation available for collection by Licensee at
Licensee’s expense.
2.11 Batch Records. Upon request by Licensee, GPC Biotech
shall make available for review copies of the individual and master
batch records received from Subcontractors and used for any step in
the Manufacture of Licensed Product delivered hereunder. Licensee
may use the information in such batch records as provided in the
License Agreement, including in regulatory submissions in order to
gain or maintain regulatory approvals.
2.12 Deviations. GPC Biotech agrees that it or its
Subcontractor’s quality assurance function shall review the
Manufacturing records for all steps and all lots of Licensed
Product delivered hereunder. Upon discovery of any deviation from
cGMP or from any warranty hereunder, GPC Biotech shall promptly
notify Licensee and conduct an appropriate investigation to
determine the cause of such deviation and take appropriate action
at its expense to avoid recurrence. GPC Biotech shall provide
Licensee with the applicable documentation of such deviations and
report to Licensee on the results of the subsequent investigation
and corrective actions taken to address such deviations.
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2.13 Warning Letters. Each Party shall promptly notify the
other Party of, and provide the other Party with copies of, any
correspondence and/or other documentation received or prepared by
the Party in connection with receipt of any warning letter or other
regulatory correspondence from the FDA or any other Regulatory
Authority in connection with the Manufacture of the Licensed
Product; provided that GPC Biotech may redact from such
communications portions thereof which it is required to keep
confidential pursuant to binding agreements with Third
Parties.
2.14 Annual Reports. GPC Biotech shall supply, on a Calendar
Year basis, Licensed Product data related to applicable complaint
test results, all investigations (regarding Manufacturing) and the
like, at Licensee’s expense, which Licensee reasonably
requires in order to complete any filing under any applicable
regulatory regime, including any annual product review report that
Licensee is required to file with any applicable Regulatory
Authority.
2.15 Communication With Governmental Agencies. Subject to
the rights and obligations set forth in the License Agreement, each
Party may communicate with any governmental agency, including but
not limited to governmental agencies responsible for granting
regulatory approval for the Licensed Product, regarding such
Licensed Product if, in the opinion of that Party’s counsel,
such communication is necessary to comply with the terms of this
Agreement or the requirements of any law, governmental order or
regulation; provided, however , that, unless in the
reasonable opinion of its counsel there is a legal prohibition
against doing so, such Party shall permit the other Party to
accompany and take part in relevant communications with the agency,
to receive copies of all such communications from the agency and to
review and provide comments on any written communication with any
Regulatory Authority or other government agency prior to submitting
such communication.
2.16.1. Independent Laboratory . In the event of any
disagreement between GPC Biotech and Licensee relating to Licensed
Product conformance to the Specifications at the time of delivery
thereof by GPC Biotech to Licensee, the Parties shall use good
faith efforts to reach an am
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