the important item is "Board recommends Return of Capital to shareholders from any net return of Mylan arbitration if successful"
http://www.phosphagenics.com/wp-content/uploads/2017/09/2017-Sept-01-Phosphagenics-Market-Update.pdf
ASX Limited Market Announcements Office
Phosphagenics Market Update
Board recommends Return of Capital to shareholders from any net return of Mylan arbitration
1 September 2017, Melbourne: Australian drug delivery company, Phosphagenics Limited (ASX
OH; OTCQX: PPGNY), announced today that its Board of Directors has agreed that in the event Phosphagenics is successful in its ongoing arbitration withMylan and receives a material payment from Mylan, it will seek torecommend that a return of capital be made to shareholders of any cash proceeds received (after legal costs).
At present, the intention is that any potential quantum would be calculated using the following equation: 30% of net cash proceeds below AU$50M plus 50% of cash proceeds received between AU$50M and AU$100M plus 70% of cash proceed received above AU$100M. The proposal will be subject to shareholder approval after any award is announced and received.
In 2011/12Phosphagenics signed agreements with Agila Specialties Private Ltd to develop and market Phosphagenics’ TPM®/Daptomycininjectable.In 2013StridesShasun sold Agila Specialties Private Ltd, together with the agreements, to Mylan. Phosphagenics filed arbitration documents in 2016 asserting that both Agila and Mylan breached the agreements. Phosphagenics’ independent experts believe maximum total damages could approach US$300M. The arbitration hearing is to be conducted in Singapore in October/November 2017, with a decision anticipated in the first half of2018
http://www.phosphagenics.com/wp-con...enics-Initiates-Arbitration-Against-Mylan.pdf
6 January 2016, Melbourne: Australian biotechnology company, Phosphagenics Limited
(ASX: POH; OTCQX: PPGNY), announced today that it has commenced legal action
against Mylan Laboratories Limited (Mylan), a wholly-owned subsidiary of Mylan
Incorporated, by filing notices of arbitration at the Singapore International Arbitration
Centre.
Phosphagenics and Agila Specialties Private Limited (Agila) entered into a Master
Research Agreement (in 2011) and a Licensing Agreement (in 2012) to develop and
ultimately commercialise a formulation combining Phosphagenics’ proprietary TPM®
technology with the injectable antibiotic daptomycin, which is indicated for the treatment
of complicated skin and skin structure infections, andstaphylococcus aureus
bloodstream infections. In 2013 Mylan acquired Agila. A lead TPM®/Daptomycin
formulation is in the final stages of development by Mylan and, based on a patent filed
by Agila, is expected to have commercialadvantages over the existing formulation of
daptomycin. Daptomycin is currently marketed by Merck under the brand name Cubicin,
and is expected to have generic competition in the United States in June 2016.
The arbitration notices assert that Mylan is liable for breaches of several provisions under
the two relevant agreements, fraudulent or negligent misrepresentations, breaches of
confidence and/or unjust enrichment in relation to intellectual property and commercial
licensing terms, amongst others. The dispute has been referred to arbitration in
Singapore, in accordance with the relevant agreements. The substantive hearing is
expected to take place in late 2016. Meanwhile, the Licensing Agreement continues in
full force and effect pending the Arbitrator's decision.
Phosphagenics has already planned for the legal costs associated with the arbitration
proceedings in its 2016 budget. There is no assurance in respect of the outcome of the
arbitration proceedings and Phosphagenics will, in accordance with its continuous
disclosure obligations, notify the market of any material events as and when they occu