Solomon Seeks $3.8M From Spirogen For AstraZeneca DealMay 2, 2014 – In The News
Mitchell Berns was featured in the Law360 article, “Solomon Seeks $3.8M From Spirogen For AstraZeneca Deal.” Full text can be found in the May 2, 2014, issue, but a synopsis is below.
Peter Solomon Co., an investment banking advisory firm recently sued the England-based biotech company, Spirogen Ltd. Now under the name of ADC Products Ltd., Spirogen failed to pay the $3.75 million minimum fee for Solomon Co.’s advising in Spirogen’s $200 million sale to a subsidiary of the large biotech company, AstraZeneca PLC.
The contract clearly stated that Solomon Co. would be compensated with a “Sale Transaction Fee” for providing financial advisory services regarding the sale of Spirogen.
Although Spirogen was sold for $200million, if the company develops according to plans, another $240million could be added to the purchase price. If this happens, the sale transaction fees would increase as well.
Spirogen claims that Solomon Co. did not complete certain parts of the contract, but Solomon Co. says they did and that Spirogen has breached the contract by not paying them accordingly or terminating the contract.
Mitchell Berns represents Solomon Co. in this case.