Common use of Shortage; Allocation Clause in Contracts

Shortage; Allocation. In the event of a shortage of Drug Product and/or Drug Substance such that Celltrion reasonably believes that it will not be able to supply ▇▇▇▇’s requirements, Celltrion will promptly provide written notice to Rani thereof. If Celltrion actually cannot supply (a) Rani’s Orders in full in accordance with the Agreement and (b) Celltrion’s requirements for Drug Product and/or Drug Substance (including its obligations to licensees or distributors of Celltrion), then Celltrion will reasonably allocate Drug Product and/or Drug Substance such that each of Rani and Celltrion (together with its licensees or distributors) will suffer a pro rata shortage, determined by reference to the Drug Product and/or Drug Substance requirements of Rani as forecast by ▇▇▇▇ and the requirements of Celltrion (together with its licensees and distributors) forecast by Celltrion.

Appears in 2 contracts

Sources: License and Supply Agreement (Rani Therapeutics Holdings, Inc.), License and Supply Agreement (Rani Therapeutics Holdings, Inc.)