Biohit corporation initiates arbitration proceedings concerning a breach of the license agreement
Stock Exchange Release May 17, 2021 at 06.30 local time (EEST)
Biohit Oyj's shareholder Biohit HealthCare (Hefei) Co. Ltd is the exclusive distributor of Biohit Oyj's Gastropanel products in China. In this connection, a dispute has arisen between the companies regarding the application of the license agreement concluded between the companies. Biohit HealthCare (Hefei) Co. Ltd has not paid royalties to Biohit Oyj in accordance with the distribution and licensing agreements. In order to resolve these and certain other controversies and claims related to the license agreement, Biohit Oyj has submitted an application to the Arbitration Institute of the Finland Chamber of Commerce to initiate arbitration proceedings.
The impact of unpaid royalties has so far been insignificant for Biohit Oyj's operations, but as the situation continues, the significance of the matter will increase.
Biohit HealthCare (Hefei) Co. Ltd was previously a joint venture of Biohit Oyj. Biohit Oyj exited the joint venture in 2016, when Biohit Oyj and Biohit HealthCare (Hefei) Co. Ltd entered into an Exclusive Distribution Agreement for the distribution of GastroPanel in China.
Biohit HealthCare (Hefei) Co. Ltd is the largest shareholder in Biohit Oyj in terms of the number of shares (32.87 percent of the B-shares). Biohit HealthCare (Hefei) Co. Ltd's CEO Liu Feng is also a member of Biohit Oyj's Board of Directors.
Osmo Suovaniemi, Chairman of the Board of Directors, +358 9 773 861
Nasdaq Helsinki Ltd.
Biohit Oyj is a globally operating Finnish biotechnology company. Biohit’s mission is "Innovating for Health” – we produce innovative products and services to promote research and early diagnosis. Biohit is headquartered in Helsinki, Finland, and has subsidiaries in Italy and the United Kingdom. Biohit’s series B share (BIOBV) is quoted on NASDAQ OMX Helsinki, Small cap/Healthcare. www.biohithealthcare.com