Business case
In the expanding Chinese molecular diagnostics market, a leading medical equipment company became involved in a dispute concerning joint venture, licensing and manufacturing agreements. The dispute arose after the respondent was acquired by a US diagnostics company and concerned sunk costs and lost profits linked to an interrupted commercial opportunity.
The analysis translated an early-stage commercial opportunity into a financially grounded damages range. It helped the parties move beyond unsupported business-plan optimism by showing which assumptions were supported by market evidence and which were not, making settlement discussions more concrete.
We reviewed sunk costs and assessed lost profits using contemporaneous business plans, subject to adjustment and validation. We tested the assumptions against market evidence, competitor benchmarks and the technical realities of PCR technology, with a view to supporting focused settlement discussions after the arbitration had commenced.