PharmaEssentia Loses Again in Arbitration, Ordered to Pay €112 Million for Intentional Breach of Contract to European Partner

The commercial arbitration between PharmaEssentia and its European partner AOP Health has spanned several years. In April 2026, the Higher Regional Court of Frankfurt, Germany, dismissed PharmaEssentia’s application to set aside the arbitration award. The company stated it intends to appeal to the German Federal Supreme Court, emphasizing that this legal process will not affect its established business operations or growth strategy.

Meanwhile, today (April 8), the International Chamber of Commerce (ICC) arbitral tribunal in Vienna issued a quantum award, ruling that PharmaEssentia must pay AOP Health approximately €112 million (approximately NT$4.1 billion) in damages for intentional breach of contract.

PharmaEssentia Inc., headquartered in Taipei, was founded in 2003. Its establishment and development have been strongly supported by the Taiwanese government through early-stage funding, policy guidance, and overseas expansion assistance, fostering a deep partnership with public institutions. PharmaEssentia is a fully integrated multinational biopharmaceutical company capable of original drug discovery, clinical trials, cGMP manufacturing, and global commercialization. It was Taiwan’s first R&D-based pharmaceutical company to surpass a market capitalization of US$1 billion and remains a flagship leader in advancing Taiwan’s biotech industry onto the global stage.

In 2009, PharmaEssentia licensed the European marketing rights for its novel drug Ropeg (P1101) to AOP Health. Subsequently, disputes arose between the two parties over differences in the delivery of clinical trial data and interpretations of contractual obligations, leading to multiple rounds of ICC arbitration and legal battles since 2017. Earlier arbitration rulings had imposed lower compensation amounts, followed by litigation in German courts seeking to set aside the arbitration awards.

The tribunal confirmed that PharmaEssentia overcharged AOP Health, at times up to 900% above normal pricing. Applying the tribunal’s valuation standard to product purchases between 2023 and 2025, PharmaEssentia overcharged AOP Health by an additional €65 million. After offsetting royalties owed by AOP during the same period, PharmaEssentia still owes AOP Health a substantial amount. In short, AOP Health does not owe any outstanding payments to PharmaEssentia. Conversely, PharmaEssentia bears a payment obligation to AOP Health amounting to over €100 million.

Today’s ruling follows the February 2025 decision by the ICC tribunal, which concluded that PharmaEssentia intentionally violated its contractual obligations and is liable for multiple claims arising from its licensing agreement with AOP Health. As a result, the tribunal issued a quantum award requiring PharmaEssentia to pay AOP Health approximately €112 million (NT$4.1 billion) in compensation for intentional breach of contract.