In a 2015 lawsuit, Advinus Therapeutics accused Syngene International of violating a contract by failing to provide certain research and development services pertaining to a drug candidate. According to the lawsuit, Syngene International was hired by Advinus to provide specific services connected to a medication candidate, but the company allegedly breached the terms of the agreement, causing Advinus to suffer losses.
Advinus claims that Syngene International failed to deliver the tools and knowledge required to complete the work by the set deadlines, costing them a possible partner for the medication candidate. In the complaint, Advinus sought damages totaling more than INR 100 crore, or roughly $15 million at the time.
In a countersuit against Advinus, Syngene International asserted that Advinus had broken the terms of the agreement by failing to pay the full sum due for the services rendered by Syngene International. Syngene International refuted the accusations. In its countersuit, Syngene International sought damages of INR 12.5 crore, or around $2 million at the time.
The High Court of Karnataka heard the case, and the parties reached an out-of-court settlement. It was reported that Syngene International agreed to pay Advinus an unknown sum to end the case, albeit the terms of the settlement were not made public.
It is important to note that contract disagreements are typical in the sector and that both Syngene International and Advinus Therapeutics are top-tier contract research organisations in India. Most of these issues are resolved through discussion or arbitration; only a small number of them go to court.