In the context of an investor-state proceeding under UNCITRAL rules, CRA provided a valuation of the local operations in Latin America of a multinational pharmaceutical company. CRA assessed the going-concern value of the company, inclusive of working capital, based on a forecast of product sales prepared prior to the threatened expropriation. The valuation took into account the expected performance of the company’s portfolio of top-selling products for a period of time beyond the company’s projections, basing future sales on sales growth rates observed for other products over the lifecycle. CRA discounted cash flows at a rate inclusive of a country risk premium, and included a quantification of prejudgment interest and costs incurred by the company in addressing the threatened expropriation.
Investment treaty disputes in the life sciences industry
In its global scale and economic impact, the life sciences industry presents unique considerations for investment treaty arbitrations. Recently, the COVID-19...