Pharmaceutical Distribution Rights Restored Through Commercial Arbitration
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January 07, 2026
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A global pharmaceutical and cosmetics company, holding a 30-year exclusive distribution license for a priority product in 12 countries, discovered that its licensing partner was allegedly making direct sales into those territories, causing potential losses of more than $100 million.
Turning to FTI Consulting for support in this commercial arbitration, the client was equipped with a comprehensive financial model, examining the dispute from multiple economic perspectives. With this support, the client was able to engage in the arbitration and business negotiations to ultimately secure confirmation of their exclusive distribution rights across all disputed territories.
- Though damages weren’t awarded, as claims were dismissed on jurisdictional grounds, the client was able to reaffirm their exclusive distribution control across all 12 disputed territories, eliminating unauthorized competition and protecting future revenue streams.
- The critical licensing relationship was preserved, maintaining the ongoing commercial partnership with the product owner, protecting long-term strategic value and allowing continued access to the product line and territories.
- The client was equipped with a sophisticated multi-country financial model, backed by expert testimony that quantified both lost distribution profits and licensor’s illicit gains.
Our Role:
- We developed a sophisticated financial model to calculate both disgorgement of profits (quantifying the Respondent’s incremental gains from contract breach) and lost profits (assessing the Claimant’s foregone earnings), providing a comprehensive damage assessment.
- We conducted a granular country-by-country analysis across 12 diverse territories, projecting sales and cost structures while accounting for local market growth rates, with varying distribution models and diverging regulatory environments to ensure accuracy.
- We finally delivered expert testimony that withstood scrutiny, as FTI Consulting’s approach remaining largely undisputed throughout the arbitration process.
Published
January 07, 2026
Key Contacts
Senior Managing Director, Head of France Economic and Financial Consulting
Managing Director