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Harbin Gloria Pharmaceuticals has terminated Bioton’s contract for the supply and distribution of insulin on the Chinese market. It was originally intended to last until 2025.
Harbin blames force majeure
According to Harbin Gloria Pharmaceuticals, the main reason for termination of the agreement are changes in the Chinese pharmaceutical market. The company states that this results in force majeure. In addition, Harbin reported that it is not able to meet the sales forecasts agreed in the contract, including the minimum order book. Bioton had already reported problems with Harbin’s contract performance. This was expected to result in a failure to meet the minimum order values and have a negative impact on the company’s financial results for 2018 and 2019.
In view of the above, the contract will be automatically terminated six months after the notice of termination. Bioton will examine the legal issues with a view to taking further steps.
It didn’t work out with Bayer either
This isn’t the first time that Bioton has problems in the Chinese market. In 2009, the company signed a similar agreement with Bayer. The agreement was to be valid for 15 years, but it was also completed ahead of schedule, in 2015.
In 2018. China was the second largest market for Bioton after Poland and accounted for 11% of sales. In the first quarter of 2019, this share was 12%.