MJ Biz reports on a series of complaints brought by the plaintiff

 

Aurora Cannabis is being taken to court by CTT Pharma, a Canadian developer of drug-delivery technologies that alleges the marijuana giant is making a bad faith effort to avoid paying what it owes under a licensing agreement.

A statement of claim filed Aug. 26 in the Ontario Superior Court of Justice names Aurora Cannabis and its subsidiary CanniMed Therapeutics as defendants.

According to the statement of claim, Ontario-based CTT Pharma entered a 15-year licensing agreement with CanniMed in early 2017 to make and sell sublingual cannabis products using CTT’s patented rapid-onset Oral Dissolvable Thin Film technology.

Aurora became a sublicensee under that agreement after acquiring CanniMed in 2018, and started selling the products in late 2019.

  • CanniMed paid CTT a US$40,000 fee upon execution of the agreement, but CTT says a further payment worth US$935,000 upon Health Canada approval of the products went unpaid, along with patent maintenance fees worth more than CA$150,000.

  • On top of that, CTT alleges that Aurora owes unpaid royalties on sales made under the licensing agreement and failed to open its books to show CTT its relevant sales.

  • Finally, CTT claims it is owed compensation for the loss of future royalties it expected to earn over the course of the 15-year licensing deal, amounting to US$39.5 million.

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Aurora Cannabis faces lawsuit over sublingual-strip licensing agreement