Economic interpretation of contractual provisions

For a major pharmaceutical company that had paid the co-developer of its blockbuster cholesterol drug a royalty based on net sales, Brattle’s expert provided testimony that: (i) described the economic justification for royalties based on net sales and (ii) explained why it was economically appropriate to take a broad view of the deductions from gross sales that were used to arrive at the net sales figure. This case settled on favorable terms for our client.