Biotechnology corporation Celltrion has expressed its intention to appeal the judgment regarding the 'COVID-19 diagnostic kit lawsuit' against domestic in vitro diagnostic corporation Humasis.
On the 3rd, the Suwon District Court ruled in favor of Celltrion in part in a damage claim lawsuit it filed against Humasis.
On that day, the first trial court acknowledged Humasis's delay in delivery and ruled that Humasis must compensate Celltrion 3.88776 billion won. At the same time, it stated that Celltrion must pay Humasis approximately 12.71072 billion won for the payment of goods and related damages.
Earlier, the two companies had entered into a 'co-research and product supply contract' for the development and commercialization of a rapid COVID-19 antigen diagnostic kit in June 2020. They later jointly developed the diagnostic kit and supplied it to the U.S. market through Celltrion's U.S. subsidiary. However, conflicts arose during the supply process.
Celltrion claimed that it had placed several orders with Humasis to supply quantities to the U.S. market from the second half of 2021 to early the following year, but Humasis repeatedly failed to meet the scheduled delivery times.
Subsequently, on December 26, 2022, it notified Humasis of the 'termination of the contract,' and the two companies engaged in reciprocal lawsuits. Humasis filed a lawsuit against Celltrion for payment of goods and damages, while Celltrion filed a lawsuit against Humasis for damages due to delivery delays and demand for the return of advance payments. The two lawsuits were later consolidated into one for proceedings.
Regarding the recent judgment, Celltrion noted, 'We respect the ruling of the court, but we have great regret about some aspects of the decision,' and expressed its intention to appeal.
The company stated, 'Although a debt of approximately 8.82296 billion won was imposed, it seems to be a result based on the societal stereotype that 'large corporations are strong, while small and medium-sized enterprises are weak,' without a thorough examination of the market conditions during the COVID-19 pandemic.'
It also asserted, 'While acknowledging that delivery delays are one of the conditions for contract termination, it is a clear contradiction not to recognize the cancellation of the contract itself as a result.'
Celltrion plans to thoroughly demonstrate the inevitability of contract cancellation due to supply delays through the appeal. The company stated, 'We will do our best to ensure that a fair and reasonable legal judgment can be made, regardless of the size of corporations.'