Reducol rights
This article was originally published in The Tan Sheet
Executive Summary
Forbes Medi-Tech's ability to sell its Phytrol (Reducol) phytosterol ingredient is "materially affected" by Novartis' noncompliance with terms of 1999 Master License Agreement, firm says March 18. Without detailing alleged noncompliance, Forbes notes it was "surprised" by Novartis' and Quaker's termination of Altus Foods joint venture, says Novartis' actions have led to delayed market introduction of certain Phytrol-containing foods. Forbes will not pay $4 mil. to buy back licensing, distribution rights for Reducol, as previously announced, but has notified Novartis it is terminating the MLA. Consequently, all rights to the ingredient, except for the Reducol name, would revert to Forbes on June 18 unless Novartis corrects noncompliance, Forbes says. Novartis believes it has complied with MLA, seeks amicable resolution...