Medchem (P.R.), Inc. - Page 17




                                       - 17 -                                         
          injunction barring MedChem U.S.A. from using, manufacturing, and            
          selling Amvisc in the United States.  Amvisc and Avitene were               
          MedChem U.S.A.’s only products.  MedChem U.S.A. faced the                   
          possible payment of costly patent infringement damages, multiple            
          damages, and an award of attorney’s fees.  The Amvisc injunction            
          caused MedChem U.S.A. to default on $10 million in debt and to              
          lay off a third of its workforce.  The Amvisc injunction caused             
          petitioners to postpone indefinitely their plans to construct an            
          Avitene manufacturing facility in Puerto Rico.                              
               Petitioners took several steps regarding Avitene in early              
          1990, following the Amvisc injunction.  First, in connection with           
          suspending their plans to construct the manufacturing facility in           
          Puerto Rico, they notified Unipro to stop its work on that                  
          facility.  Second, in February 1990, MedChem P.R. wrote off for             
          financial accounting and tax purposes all of the capitalized                
          expenditures ($881,966) relating to the proposed facility.                  
          Third, MedChem P.R. closed its Humacao office and terminated the            
          workers there (Mr. Perez and Wanda Rodriguez).  In connection               
          therewith, Mr. Perez transferred to Alcon P.R. all of the records           
          as to suppliers and vendors which had been kept in the Humacao              
          office, and he transferred to MedChem U.S.A.’s Woburn facility              
          all of the other records which had been kept in the office,                 
          including records relating to the design and construction of                
          MedChem P.R.’s proposed facility in Puerto Rico.  Fourth,                   






Page:  Previous  7  8  9  10  11  12  13  14  15  16  17  18  19  20  21  22  23  24  25  26  Next

Last modified: May 25, 2011