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Bates White provides economic analysis in Merix Pharmaceutical Corp. v. Clinical Supplies Management, Inc. 

March 16, 2015

In Merix Pharmaceutical Corp. v. Clinical Supplies Management, Inc. (CSM), Judge Matthew F. Kennelly, of the US District Court for the Northern District of Illinois Eastern Division, granted summary judgment on a number of Merix’s damages claims and a jury ultimately found in CSM’s favor at trial. The litigation involves allegations that CSM failed to appropriately carry out its contractual and regulatory responsibilities in a clinical trial for its drug Releev, an over-the-counter cold sore treatment, resulting in unusable clinical test results for Merix and the subsequent undertaking of a second clinical trial.

Attorneys from Segal McCambridge Singer & Mahoney, on behalf of defendant CSM, hired Bates White to assess and respond to two plaintiff’s experts’ damages testimony. Partner Richard Manning was retained as the economic expert to offer damages testimony. Dr. Manning provided an expert report and deposition testimony assessing damages claims of the plaintiff’s experts. In his report, Dr. Manning identified economic inconsistencies in plaintiff’s experts’ assertions including conceptual errors in methodology and data utilization, particularly an unsubstantiated and inappropriate reliance on comparisons of product advertising to sales ratios, and computing errors in lost profits analysis.

“Dr. Manning’s robust analysis was very helpful to obtaining a favorable outcome for our client. His testimony was instrumental in helping to eliminate the largest component of Merix’s damages claims,” said Segal McCambridge Singer & Mahoney Shareholder Adam Jagadich.