Humasis-Celtrion Clash Over Cancellation of 91.9 Billion Won Contract

Humasis "Unfair and Excessive Demands... Will Take Legal Action"
Celltrion "Justified Reduction Due to Delivery Delay"

[Asia Economy Reporter Myunghwan Lee] Humasys and Celltrion are showing sharp disagreements over the termination of a 91.9 billion KRW contract for the supply of COVID-19 diagnostic kits. Humasys claims that Celltrion made excessive demands, while Celltrion maintains that the contract was terminated properly due to delivery delays.

According to the bio industry on the 30th, Humasys signed a contract to supply COVID-19 diagnostic kits to Celltrion on January 22. The initial contract amount was approximately 133.6 billion KRW. Of this, about 44.7 billion KRW was fulfilled according to the contract, while Humasys claims that the remaining 91.9 billion KRW was unilaterally terminated by Celltrion. The contract fulfillment rate is about 32.69%.

According to Humasys, the two companies extended the contract period from April 30 to the 31st of this month on April 28 to respond to the U.S. COVID-19 diagnostic kit market environment.

Humasys stated, "Celltrion made demands that are factually incorrect and unfairly excessive," adding, "This contract termination is due to Celltrion's unilateral contract termination notice. We are conducting legal reviews for legal action and preparing active responses including claims for damages." However, when asked about the specific demands from Celltrion, a Humasys official explained, "It is difficult to say at this stage what constitutes excessive demands."

On the other hand, Celltrion holds the position that the contract reduction is justified due to Humasys's fault. Celltrion explained in a disclosure the previous day, "There was a failure to supply the market in a timely manner due to delivery delays by the COVID-19 diagnostic kit manufacturer," and "Subsequently, the supply contract amount was changed due to changes in the COVID-19 environment."

Meanwhile, a Humasys official countered, "The delivery delay cited by Celltrion is merely a unilateral claim."

Meanwhile, the total supply contracts related to COVID-19 between the two companies exceed 400 billion KRW. A Humasys official said, "The total contract amount for COVID-19 related products between Humasys and Celltrion is about 401.2 billion KRW," adding, "Of this, 297.9 billion KRW, or 74.26%, has been fulfilled, and 103.3 billion KRW, or 25.74%, including this termination disclosure, remains unfulfilled."

This content was produced with the assistance of AI translation services.