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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,
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