Protagonist Therapeutics, Inc 10-Q

ITEM 1. LEGAL PROCEEDINGS ​ From time to time, we may become subject to litigation and claims arising in the ordinary course of business. We are not currently a party to any material legal proceedings and we are not aware of any pending or threatened legal proceeding against us that we believe could have a material adverse effect on our business, operating results or financial condition. On January 23, 2020, we initiated arbitration proceedings with the International Court of Arbitration of the International Chamber of Commerce against Zealand Pharma A/S (“Zealand”) related to a collaboration agreement we and Zealand entered into in 2012 and terminated in 2014. The agreement provides for certain post-termination payment obligations to Zealand with respect to compounds related to the collaboration that we elect to further develop and meet specified conditions. In our arbitration claim, we are seeking a declaration that we have no past, present or future milestone or royalty payment obligations under the agreement with respect to PTG-300 because PTG-300 is not a compound relating to the collaboration for which post-termination payments to Zealand apply. We are also seeking repayment of $1.0 million in milestone payments we have made, as well as our costs, fees, and expenses of the proceeding. Zealand disputes our claims and has filed counterclaims for payment of an additional $1.0 million future milestone, as well as payment of their arbitration costs, fees and expenses . The arbitration is pending. If Zealand prevails in the arbitration, we could be required to make contractual payments to Zealand described in our prior periodic reports filed with the Securities and Exchange Commission. Those payments could include milestone payments for the achievement of certain development, regulatory and sales milestone events, and a low single digit royalty on worldwide net sales of PTG-300.