Elekta (STO:EKTA B) said today that an arbitration tribunal in London this week found in favor of Humediq to the tune of $9.9 million (EU €8.9 million) in a spat with 2 Elekta subsidiaries over exclusive supply agreements.
The dispute is over an agreement Elekta entered into in 2011 in which it became the exclusive supplier of Humediq’s Identify system patient identification and validation system.
Elekta said it decided to discontinue marketing and sales of the Identify system in late 2014, due to “the product’s commercial viability,” according to a press release.
The tribunal found in favor of Humediq and its Identify, determining that the Elekta companies “did not validly terminate the 2011 agreement,” and as a result must pay $9.9 million (EU €8.9 million).
Elekta touted the amount as being less than half of the $21.2 million (EU €19 million) that Humediq claimed in the arbitration, and said that each party had to pay for their own legal fees.
U.K.-based Elekta said it will write off approximately $5.6 million (EU €5 million) connected to the payments under the agreement, with the negative result of approximately $15.6 million (EU €14 million) being taken during Elekta’s 4th quarter of fiscal year 2015/2016 as a “non-recurring item.”
Last month, Elekta said it inked an 8-year strategic partnership with Australian radiotherapy provider GenesisCare for more than $100m.
The new partnership includes the acquisition of Elekta’s Leksell Gamma Knife Icon radiosurgery systems, Versa HD linear accelerators, brachytherapy systems, software and other services, Elekta said.