ChemImage Sues Johnson & Johnson for $1.5 Billion in High-Stakes Surgical Robotics Trial
Staff Editor Pittsburgh Biotech Firm Sues Johnson & Johnson for $1.5 Billion in Contract Dispute
ChemImage, a Pittsburgh-based biotech company, has filed a $1.5 billion lawsuit against healthcare giant Johnson & Johnson in federal court. The legal action stems from a failed 2019 partnership involving a surgical robotics project.
The trial, which began in Manhattan under US District Judge Jesse Furman, centers on a breach of contract claim. Johnson & Johnson executives are scheduled to testify in the high-stakes case.
The partnership, initiated in 2019, aimed to propel Johnson & Johnson into the competitive surgical robotics market. ChemImage had developed AI-powered imaging software designed to assist surgeons during robotic procedures. The collaboration included a multibillion-dollar contract with specific payment schedules and milestones.
ChemImage is seeking $180 million in penalties and the restoration of its intellectual property. The company alleges that Johnson & Johnson’s withdrawal from the partnership has significantly harmed its business and technology development efforts.
The original contract included a $7 million upfront payment to ChemImage, with the potential for $1.5 billion in royalties. However, in April 2023, the contract was terminated amid delays and the absence of a viable product. A key point of contention in the trial will be whether Johnson & Johnson terminated the contract “with cause” or “without cause.”
Johnson & Johnson maintains that ChemImage failed to meet developmental milestones and caused cost overruns. In contrast, ChemImage argues that delays were due to issues with Johnson & Johnson’s technology and lack of support.
The trial is expected to feature testimonies from nine current and former Johnson & Johnson executives. ChemImage will also call its former executives, including ex-CEO Dr. Jeffrey Cohen, to the stand. These testimonies will likely focus on the reasons behind the partnership’s failure and the circumstances surrounding the contract’s termination.
As the trial unfolds, the healthcare and tech industries will be closely watching its outcome, which could have significant implications for future partnerships in the rapidly evolving field of surgical robotics.
