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$130 Million Award to Analysis Group’s Biopharmaceutical Client in Breach of Contract Ruling

30 September 2024

Analysis Group was retained by Quinn Emanuel Urquhart & Sullivan on behalf of Shareholder Representative Services (SRS), the plaintiff designated by former stockholders of Syntimmune, in a breach of contract litigation brought against two major pharmaceutical companies. SRS claimed that the defendants breached their 2018 merger agreement with Syntimmune by failing to make commercially reasonable efforts to develop a monoclonal antibody treatment for autoimmune diseases. SRS also alleged that the defendants refused to make a $130 million milestone payment following that treatment’s successful completion of a Phase 1 clinical study.

An Analysis Group team led by Managing Principal Jee-Yeon Lehmann, Principal Brian Ellman, Vice Presidents Federico Mantovanelli and Philipp Tillmann, Manager Olivia Althans, and Consultant Liz Neyens supported four affiliated experts, all of whom filed reports and testified at deposition and trial.

  • Denis Boyle opined on topics related to the chemistry, manufacturing, and controls (CMC) processes for biologic drugs.
  • Michael S. Kinch opined on the likelihood of clinical trial success and regulatory approvals.
  • Mark S. Robbins opined on biopharmaceutical regulatory approaches, clinical development, and reasonableness of development timelines.
  • John Russell opined on the competitive landscape, commercial potential, pricing, and reimbursement in the biopharmaceutical industry.

Referencing the testimony of Professor Kinch, Dr. Robbins, and Mr. Russell in her opinion, a Delaware Court of Chancery judge agreed with SRS’s argument that the defendants breached the merger agreement’s requirements and awarded $130 million to SRS as compensation for the missing milestone payment. The Court also found that the defendants breached a contractual requirement to exercise “commercially reasonable efforts” to develop and bring the drug to market and indicated that it would issue a future opinion on damages associated with the defendants’ early termination of the program.

 

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Brian Ellman

Brian Ellman

Principal

Mr. Ellman specializes in the application of microeconomics, statistics, and financial analysis to complex commercial litigation matters and government investigations. He has worked on behalf of the US Department of Justice and Federal Trade Commission, and has consulted to law firms in litigation and regulatory matters involving antitrust and competition, drug safety and product liability, intellectual property, data breaches, and general commercial damages issues. Mr. Ellman has conducted market analyses and assessments of competitive effects in major antitrust matters, as well as for proposed and executed mergers. He has also conducted statistical analysis, market research, and other economic analyses to evaluate the appropriateness of class certification in antitrust and commercial disputes, and to assess liability and damages. Mr. Ellman’s expertise in matters involving the pharmaceutical and medical device industries includes analyzing therapeutic markets and competitive dynamics; assessing evidence of causal associations in product liability suits; and conducting statistical analyses of market surveillance, clinical trial, and observational study data to evaluate the comparative effectiveness, safety, and dosing patterns of different treatments across a variety of therapeutic categories. He has published articles on a wide range of topics, including the assessment of causation and harm in data breach litigation, the appropriate analysis and interpretation of post-marketing surveillance data in product liability cases, and the economics of biosimilar drugs.

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Michael Scott Kinch

Michael Scott Kinch

Executive Dean of Science and Vice President, Innovation, Long Island University

Professor Kinch, a drug development expert specializing in cancer, immunological, and infectious diseases, focuses on combining cutting-edge science and entrepreneurship to improve public health. At Washington University in St. Louis, Professor Kinch founded and directs the Center for Research Innovation in Biotechnology (CRIB), which assesses trends that guide the research and development of novel medicines. He also helped create the Center for Drug Discovery (CDD) to identify and underwrite the university’s most promising drug discovery projects. Professor Kinch has been issued more than a dozen US patents, published more than 100 patent applications, and written several books and book chapters on the commercialization of biopharmaceutical innovation, as well as other aspects of drug development. He has published widely in peer-reviewed journals, including Drug Discovery Today, Science, Cell Chemical Biology, and Biotechnology Law Report, and his research has been profiled in media outlets such as The Wall Street Journal, NPR, CBS News, and The New York Times. Before joining Washington University, he was the managing director of the Yale Center for Molecular Discovery. He has also taught at Johns Hopkins University and Purdue University, and held senior research positions at Functional Genetics and MedImmune. Professor Kinch serves on the board of the American Cancer Society and on scientific advisory boards (SABs) for several biopharmaceutical companies.

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Jee-Yeon Lehmann

Jee-Yeon Lehmann

Managing Principal

Dr. Lehmann specializes in applying microeconomics, econometrics, and statistical methods to complex litigation and government investigations in the areas of antitrust and competition, labor and employment, health care, and commercial damages. She has extensive experience in labor market antitrust matters and has evaluated market definition, market power, class certification, liability, and damages issues in antitrust cases in the pharmaceutical, health care, technology, and consumer products industries. In labor and employment matters, Dr. Lehmann has served as a testifying or consulting expert in matters involving allegations of worker misclassification, violations of wage & hour laws, discrimination, and breach of non-compete agreements. In her work with pharmaceutical and medical device industries, she has analyzed economic, health, and scientific data to assess liability, damages, and causation. She regularly leads teams supporting biostatisticians, epidemiologists, scientists, and regulatory experts in evaluating research and development processes and analyzing clinical trial, laboratory testing, registry, medical claims, and adverse events data in product liability, intellectual property, and breach of contract disputes.

Dr. Lehmann research has been published in the Journal of Economic Literature, The Journal of Human Resources, Labour Economics, Cartel & Joint Conduct Review, Distribution, Cybersecurity Law & Strategy, and Antitrust Report, and her academic work has been cited in leading media outlets, including Scientific American, Forbes, and BBC News. She serves as a vice-chair of the Distribution and Franchising Committee of the American Bar Association (ABA) Antitrust Law Section. Prior to joining Analysis Group, Dr. Lehmann was an assistant professor of economics at the University of Houston, where she taught courses in labor economics and microeconomics.

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Federico Mantovanelli

Federico Mantovanelli

Vice President

Dr. Mantovanelli is an economist specializing in the application of microeconomics, statistics, and econometrics to litigation matters in the areas of antitrust, health care, and labor and employment. In his health care work, he supports expert testimony and manages case teams in the analysis of claims data and contractual agreements across litigation areas. In his work in labor and employment, Dr. Mantovanelli has analyzed class certification issues and calculated damages in cases related to allegations of no-poach agreements. His antitrust litigation experience includes the estimation of overcharges, pass-through, and damages. He also has provided analyses of alleged anticompetitive practices in electronics manufacturing, the energy sector, and the airline industry. Dr. Mantovanelli’s research on employment and antitrust issues has appeared on Law360, the Journal of Transport Economics and Policy, and the American Bar Association’s Economics Committee Newsletter and Distribution. His academic work, focused on the long-term economic impact of historical institutions, has been published in the Journal of Development Economics and The Journal of Human Resources.

 

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Mark Robbins

Mark Robbins

President and CEO, Kodiak Strategic Consultants, LLC

Dr. Robbins is a pharmaceutical and biotech executive with over 40 years of broad-based industry experience. In his role at Kodiak Strategic Consultants, he consults to a diverse group of pharmaceutical and biotech companies on clinical, regulatory, business development, and licensing issues. Dr. Robbins served as a CEO in residence at the University of Minnesota’s Office for Technology Commercialization and co-founded several biotech ventures. He is actively involved with a number of startups, including GigaMune, Neuropharma Meds, and Diastol Therapeutics. He served as the COO of Bullet Biotechnology, regulatory strategic advisor to GigaGen, and acting CEO of GigaMune, all of which have focused on novel immunotherapies targeting cancer and autoimmune diseases. Dr. Robbins has served as an expert in multiple antitrust matters, intellectual property cases, and contract disputes, and provided testimony at deposition, trial, and arbitration. Prior to his consulting career, he held several senior-level positions at brand and generic pharmaceutical companies, where he was responsible for the development of regulatory and clinical strategies that led to numerous new drug application (NDA), biologics license application (BLA), and abbreviated new drug application (ANDA) approvals by the US Food and Drug Administration (FDA). He has conducted analyses in therapeutic areas that include cardiology, oncology, endocrine/metabolic, women’s health, infectious diseases, radiology, and nuclear medicine and diagnostics. In addition, Dr. Robbins has experience assisting biotech startups with strategy and financing. He holds adjunct professorships in pharmacology at the University of Minnesota Medical School and the University of Minnesota College of Pharmacy, and his work has been published in numerous peer-reviewed scientific journals. Dr. Robbins serves on the Antitrust Council of the Minnesota State Bar Association.

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Philipp Tillmann

Philipp Tillmann

Manager

Dr. Tillmann specializes in the application of microeconomics, econometrics, and statistical methods to litigation matters, government investigations, and strategy assignments. He has managed case teams and conducted analyses in antitrust and health care litigation matters across a range of industries, including pharmaceuticals, health care providers and payers, social media, cable television, consumer electronics, automobiles, airlines, and chemical products. These analyses have included damages analysis, merger simulation, and quantitative modeling. In merger investigations, he has supported experts for the US Department of Justice (DOJ), the Federal Trade Commission (FTC), state attorneys general, and merging parties related to horizontal and vertical transactions. Dr. Tillmann’s research has appeared in the Journal of Competition Law & Economics and the American Journal of Political Science. He has taught economics to undergraduate and graduate students at The University of Chicago and the University of Rochester.

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