Porton Pharma Receives Novartis' Unilateral Notice to Terminate Comprehensive Agreements

According to the written notice: (1) Novartis unilaterally requested the termination of the master agreement signed with PSI, effective immediately; (2) Novartis unilaterally demanded that the company vacate the Mengeš campus, return the premises, complete property handover, and return leased items within no more than 90 days from the issuance of the notice; (3) Novartis unilaterally claimed that PSI’s suspension of workshop construction constitutes a material breach, and it will reserve the right to claim service fees and compensation totaling approximately €54.7 million (estimated amount) from PSI.
As of the date of this announcement, the Company and its subsidiary PSI have not received any notice from Novartis regarding the initiation of formal legal proceedings.
PORTON does not accept the above claims of Novartis and regrets the unilateral termination of the comprehensive agreement by Novartis. The company will actively maintain communication and negotiation with Novartis, and will take judicial measures if necessary to fully protect its legitimate rights and interests.