Opinion ID: 203621
Heading Depth: 2
Heading Rank: 1

Heading: QLT's Distribution Partnership with CIBA Vision

Text: Long before final FDA approval, the parties recognized the potential for Visudyne's commercial exploitation. In November 1993, Dr. Ed Levy approached CIBA Vision (sometimes CIBA), [5] a Swiss company, about a partnership for manufacturing and distributing what became Visudyne. To entice CIBA Vision, Dr. Ed Levy provided it with a some of Dr. Miller's confidential research. [6] This disclosure violated the material transfer and confidentiality agreements between Dr. Miller and QLT, which permitted QLT access to Dr. Miller's research results but explicitly prohibited QLT from disclosing those results to third parties. [7] Dr. Ed Levy made several other unauthorized disclosures. For example, in a January 1994 meeting with CIBA, QLT disclosed additional treatment parameters gleaned from Dr. Miller's work. Such disclosures served their intended purpose: they whetted CIBA's appetite. After it was informed that Dr. Miller was planning to disclose much of her research at an ophthalmology conference in the spring of 1994, CIBA Vision requested prompt access to Dr. Miller's work. Realizing that CIBA Vision was developing its own photosensitizer agent, QLT promised to share all of Dr. Miller's experimental data even though QLT was precluded from making such a disclosure without Dr. Miller's consent. QLT further determined that it would be advantageous to have Dr. Miller present her research to CIBA Vision. Consequently, QLT approached Dr. Miller and requested that she make such a presentation. Dr. Miller was reticent about disclosing her results because QLT and MEEI had not yet negotiated a licensing arrangement for her treatment, but Dr. Ed Levy promised Dr. Miller that QLT would enter into a licensing agreement with MEEI. In early March of 1994, QLT confirmed in writing its promise to license Dr. Miller's treatment from MEEI. Armed with these assurances, Dr. Miller agreed to make a presentation of her confidential work to CIBA Vision. Still, as late as the car ride to the meeting, Dr. Miller expressed concerns to the Levys about discussing her confidential work without a formal, written licensing agreement in place. The Levys again assured her that QLT would protect the information that she was about to present to CIBA Vision, that QLT would license the treatment from MEEI, and that QLT would treat MEEI fairly. Pleased with Dr. Miller's presentation, CIBA Vision expressed a desire to enter into a partnership with QLT. CIBA Vision executed a Letter of Understanding in which it wrote: Dr. J Miller's (Harvard University) presentation has impressed and convinced us that Photodynamic Dynamic Therapy will be the treatment of Age-related macular degeneration of the future. We would therefore appreciate a joint development ... under the CIBAumbrella agreement. This letter was followed by a more detailed Letter of Intent between CIBA Vision and QLT in May of 1994. Around the time that this Letter of Intent was signed, Dr. Miller made portions of her research findings public at an ophthalmology conference, as both QLT and CIBA Vision anticipated. Indeed, Dr. Miller made additional presentations to a CIBA Vision representative at the same conference. Thereafter, CIBA Vision continued to press QLT for additional information from Dr. Miller's research, as well as for her personal involvement in briefings. CIBA wrote that it was essential that Dr. Miller share[ ] all the information and statistics with us (emphasis in original). In addition, CIBA wrote that it was essential that Dr. Miller  does give a demonstration directly to CIBA representatives. After further promises of a license and fair compensation, Dr. Miller acceded to CIBA Vision and QLT's requests. Subsequently, in February 1995, QLT signed a definitive agreement with CIBA Vision.