Clash over exclusive Middle East distribution rights of popular fat reducing technology CoolSculpting has allegedly cost Dubai-based Dansys millions of dollars
Dubai-based medical equipment distributor Dansys Group has filed a $52 million law suit against US pharmaceutical giant Allergan over allegations of fraud and breach of contract, according to court documents seen by Arabian Business.
In February 2017, Allergan announced it was acquiring Zeltiq - the medical technology company behind popular fat reducing treatment CoolSculpting, before completing the acquisition for approximately $2.4 billion in cash.
Dansys, which had the exclusive rights to distribute Zeltiq’s CoolSculpting machines in the UAE and three other countries in the Middle East, is claiming Allergan and Zeltiq colluded to illegally terminate the company’s contract in April after Dansys in February bought millions of dollars’ worth of CoolSculpting machinery which it was planning on distributing exclusively.
Dansys claims it is a victim of “circumvention, fraud and collusion by the two defendants together, who colluded against it,” according to Dubai Courts documents.
It also claims Zeltiq did not abide by the exclusively agreement, having sold CoolSculpting encryption cards to other parties in the UAE.
Allergan and Dansys have not responded to requests for comment by Arabian Business.
US pharma Allergan, best known for making Botox, was acquired by New York-listed pharmaceutical giant AbbVie in a $63 billion cash and stock transaction in June last year.