Item 1.02. Termination of a Material Definitive Agreement.
As previously disclosed, on October 12, 2021, Delcath Systems, Inc. (the
"Company") caused its wholly owned subsidiary, Delcath Systems, Ltd., to notify
medac GmbH, a privately held, multi-national pharmaceutical company based in
Germany ("medac") in writing that it was terminating the License, Supply and
Marketing Agreement dated December 10, 2018 between Delcath Systems, Ltd. and
medac (the "Agreement") due to medac's nonpayment of a milestone payment due
under the Agreement, with the effective date of termination of the Agreement
being April 12, 2022. medac disputed having an obligation to make a milestone
payment under the Agreement and demanded withdrawal of the termination notice.
The Company declined to withdraw the termination notice, and on December 16,
2021 Delcath Systems, Ltd. initiated an arbitration proceeding pursuant to the
dispute resolution provisions of the Agreement.
On December 30, 2021, Delcath Systems, Ltd. received a letter from medac stating
that, due to its failure to withdraw the termination notice, medac was
terminating the Agreement with immediate effect. In the letter, medac reserved
its rights in full, including a purported claim for damages for wrongful
termination. In a separate letter, medac agreed to work with the Delcath
Systems, Ltd. to arrange an orderly transition in order to minimize the impact
of any termination on patients and physicians.
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