Lai Mei Pharmaceutical was sued again for impotence "magic medicine" triggering a series of cases

On February 17, Lai Mei Pharmaceutical announced that its wholly-owned subsidiary Lai Mei Pharmaceutical received legal documents sent by the Changchun New District Court.
Haiyue Pharmaceutical sued Lai Mei Pharmaceutical and Lai Mei Pharmaceutical, and froze Lai Mei Pharmaceutical.
51.
4575 million yuan of funds in the bank account of the industry
.

01 Profitable from experience pack sales?

In February 2019, Lai Mei Pharmaceutical announced that its subsidiary Lai Mei Pharmaceutical and Haiyue Pharmaceutical signed the "Tadalafil Tablet Licensing Agreement in China" (hereinafter referred to as the "Authorization Agreement"), and obtained Haiyue Pharmaceutical's first domestic license agreement.
The exclusive sales agency of "Tadalafil Tablets", a new drug imitated for the treatment of erectile dysfunction (ED), in China
.

Haiyue Pharmaceutical announced in August 2020 that the company stated in the "Purchase and Sales Contract" that it would give Tadalafil Tablets (Xinweige) experience packs at a ratio of 1:1 based on the number of deliveries from Lai Mei Pharmaceutical.
Promote the market development work of Laimei Pharmaceutical.
.
.
Help Laimei Pharmaceutical reduce investment and gain market share with practical actions
.

In the current contract, Haiyue Pharmaceutical presented Lamei Medicine Tadalafil Tablets (Xinweige) with a market value of more than 33 million yuan in proportion
.

However, in the follow-up sales process, Haiyue Pharmaceutical believed that Laimei Pharmaceutical did not give away the tadalafil tablets it donated to consumers, but sold it at a certain sales price, with a cumulative sales of 51.
4575 million yuan, so it requested This part of the sales is paid to Haiyue Pharmaceutical
.

In the announcement, Lai Mei Pharmaceutical stated that all transactions conducted by Lai Mei Pharmaceutical in this case were real transactions with commercial substance, and there was no illegal sales
.

02 Laimei and Haiyue sued each other

In fact, due to the dispute over the termination of the contract for the agency sales of tadalafil tablets, the subsidiary of Laimei Pharmaceutical previously sued Haiyue Pharmaceutical and was counter-sued by Haiyue Pharmaceutical
.

In February 2019, Changchun Haiyue granted Chongqing Laimei the exclusive sales agency rights for the newly approved tadalafil generic drugs in China
.

According to the agreement: the annual sales task volume is determined by both parties through negotiation.
If Chongqing Laimei meets the agreed requirements every year in the first three years, it will obtain the permanent exclusive sales agency right of authorized products in China
.

However, after only one year of cooperation, in May 2020, the two parties had a conflict; Haiyue Pharmaceutical planned to cancel the exclusive sales rights of Lai Mei Pharmaceutical in China on the grounds that Lai Mei Pharmaceutical did not meet the task goals agreed in the contract
.

For this reason, the two parties finally "come to court".
First, Lai Mei Pharmaceutical sued Haiyue Pharmaceutical, demanding the return of 50 million yuan for the transfer of sales rights; then Haiyue Pharmaceutical countersued Lai Mei Pharmaceutical, requiring Lai Mei Pharmaceutical to compensate for the economic losses caused by the breach of contract.
160 million yuan
.

In the end, the court ruled in October 2021 to rescind the "Authorization Agreement" signed by the two parties, Haiyue Pharmaceutical returned 37.
5 million yuan of the transfer of sales rights of Lai Mei Pharmaceutical, and Lai Mei Pharmaceutical compensated Haiyue Pharmaceutical for 37.
5 million yuan in loss of profits
.

However, Lai Mei Pharmaceutical refused to accept this and filed an appeal, requesting that Haiyue Pharmaceutical should return the full amount of the transfer fee of RMB 50 million in accordance with the law, and Haiyue Pharmaceutical should be commuted to compensation of RMB 20.
4346 million
.

In November 2021, Chongqing Laimei and Changchun Haiyue expressed their dissatisfaction with the first-instance judgment and appealed to the Jilin Provincial Higher People's Court
.

Chongqing Laimei asked Changchun Haiyue to pay 50 million yuan for the transfer of sales rights in full, and at the same time sentenced Changchun Haiyue Pharmaceutical to compensate for losses of 20.
4346 million yuan; Changchun Haiyue requested that it should not return the sales rights transfer payment of 37.
5 million yuan in accordance with the law
.

Lai Mei Pharmaceutical's announcement on the evening of February 17 this year is based on this series of matters
.

03 Donation of prescription drugs is expressly prohibited

The latest case progress announcement of Lai Mei Pharmaceutical Co.
, Ltd.
shows that in the "Civil Complaint" submitted by Changchun Haiyue, the sales plan of tadalafil tablets may have involved "experiential package donation", that is, prescription drug donation, and this behavior It is expressly prohibited by the "Measures for the Supervision and Administration of Drug Circulation"
.

In the sales planning of this prescription drug, there has been a promotional design of experience and gifts, but this obviously does not meet the regulations in the "Measures for the Supervision and Administration of Drug Circulation"
.

Lamei Pharmaceutical emphasized in the announcement that all transactions conducted by Chongqing Lamei in this case were real transactions with commercial substance, and there was no illegal sales
.

However, this is the unilateral rhetoric of Laimei Pharmaceuticals
.

At present, the case has not yet been heard.

Reference: Enterprise Announcement Interface News