Medchem (P.R.), Inc. - Page 10




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          designated Alcon P.R. as Avitene’s manufacturer.  The labels                
          read:                                                                       
               Manufactured by:    Alcon P.R.                                         
                                   Humacao, Puerto Rico 00661                         
               For:                MedChem P.R.                                       
                                   Humacao, Puerto Rico 00661                         
               Distributed by:     MedChem U.S.A.                                     
                                   Woburn, Massachusetts 01801                        
               Neither petitioner acquired under the asset purchase                   
          agreements Alcon P.R.’s Avitene-manufacturing facility in Humacao           
          or the right to market, distribute, or sell Avitene in Japan.4              
          That right to the Japanese market was initially retained by Alcon           
          Pharmaceuticals, which, during the period of retention, purchased           
          Avitene for the Japanese market from MedChem P.R.  Alcon P.R.               
          manufactured the Avitene sold to Alcon Pharmaceuticals and                  
          treated it the same as all other Avitene for purposes of                    
          scheduling, planning and buying, manufacturing, and quality                 
          control.                                                                    
               The respective parties to the non-competition agreements               
          were:  (1) MedChem U.S.A. and Alcon Labs, (2) MedChem U.S.A. and            
          Alcon Pharmaceuticals, and (3) MedChem U.S.A. and Alcon P.R.                
          Under these agreements, the Alcon Entities generally promised not           
          to manufacture, market, or sell any product having the same or              



               4 Neither petitioner has ever had an Avitene manufacturing             
          facility in Puerto Rico.                                                    





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Last modified: May 25, 2011