PharmaEssentia Announces Receipt of Second Partial Arbitral Award from ICC International Court of Arbitration

1. Parties to the Legal Proceeding:

Claimant: PharmaEssentia Corporation Respondent: AOP Orphan Pharmaceuticals GmbH (hereinafter "AOP")

2. Name of Court or Adjudicating Authority:

International Court of Arbitration of the International Chamber of Commerce (ICC) (Place of Arbitration: Frankfurt)

3. Case Reference Number:

ICC Case No. 25808/PTA/XZG

4. Date of Event:

August 8, 2026

5. Background of the Incident (including subject of dispute):

The International Court of Arbitration of the ICC previously issued a First Partial Final Award on February 17, 2025, in the arbitration between PharmaEssentia and AOP, finding partial delay attributable to PharmaEssentia. The company has legally initiated annulment proceedings, which are currently under review by the German Federal Supreme Court.

6. Proceedings:

On August 7, 2026, PharmaEssentia received the Second Partial Final Award from the ICC. The key findings are as follows:

The arbitral tribunal ruled that AOP must pay PharmaEssentia for outstanding product supply payments and royalties from 2019 to the first half of 2023, amounting to over EUR 17 million.

Regarding the 5-month delay in obtaining European marketing authorization and the 4.5-month supply delay, the tribunal determined offsetting amounts of EUR 31,319,250.27 and EUR 34,561,864.00, respectively, against AOP’s outstanding payments.

On the dispute concerning drug procurement pricing between 2019 and 2021, the tribunal ruled that PharmaEssentia shall refund EUR 31,601,477.50, with interest calculated at the base rate plus 5% per annum, capped at a maximum of 6% per year.

7. Financial and Operational Impact and Estimated Amount:

PharmaEssentia achieved full-year revenue of NT$15.6 billion in 2025, and cumulative revenue from January to July 2026 has already reached nearly NT$14.5 billion, reflecting a sound financial position. Considering that AOP has owed royalties and product payments totaling nearly EUR 100 million since the second half of 2023, the current arbitral award is not expected to have a material impact on the company’s financial condition or operations.

8. Response Measures and Improvements:

The company will evaluate potential annulment of the arbitral award.

9. Other Matters to be Disclosed:

Regarding the press release issued by AOP on August 8, 2026 (Taiwan time) and related media reports published today, PharmaEssentia clarifies as follows:

AOP’s claim that PharmaEssentia owes it over EUR 100 million is false and based solely on AOP’s unilateral calculations, not on the content of the current arbitral award. In fact, AOP owes PharmaEssentia nearly EUR 100 million in unpaid royalties and product payments.

AOP’s allegation that PharmaEssentia engaged in "overpricing by up to 900%" pertains only to product pricing during the specific period of 2019–2021. The current award adopted AOP’s expert witness methodology, and PharmaEssentia will consider challenging the award.

AOP’s claim that PharmaEssentia received "approximately EUR 65 million in excess payments" is also based on AOP’s unilateral estimates and is not part of the current arbitral award.

The content currently published on AOP’s official website does not represent the complete official ruling. For accurate and updated information on the arbitration case, please refer to disclosures made on Taiwan’s "Public Information Observation System."