Commercial reasonableness assessment in ICDR proceeding

CRA provided an expert opinion on liability in an ICDR proceeding between parties to a license agreement concerning development and commercialization of a pharmaceutical product in Japan.  On behalf of the respondent, CRA addressed whether it was commercially reasonable to cease development of the product given the information available at the time.  CRA developed projections of the market opportunity and modeled the expected net present value associated with continued development activity.  Under reasonable scenarios of product launch and market assessment, it was found that the present value of development costs exceeded the present value of expected operating profits.