$50 million settlement payment for entrepreneur

Jim Semlin, the founder of Pan Pharmaceuticals, has received a record $50 million from the Federal Government after it settled a $200 million case.

Jim Semlin, the founder of Pan Pharmaceuticals, has received a record $50 million from the Federal Government after it settled a $200 million case.

Semlin had sued the Government claiming that the federal drugs regular, the Therapeutic Goods Administration, had a vendetta and acted with vengeance when withdrawing Pan’s licence after concerns over certain products and manufacturing processes.

Pan was forced to withdraw its sickness drug Travacalm in 2003 because it allegedly caused hallucinations in some people. The business collapsed soon after.

Semlin sued the TGA for negligence, seeking $200 million in damages, which was the value of Pan the month before recall.

“I alleged that these people knew full well the catastrophic effect their decision would have on Pan, its employees, customers, service providers, shareholders and, of course, me and my family, both financially and personally,” Selim says in a statement today.

Selim called for an apology from the Government and a public inquiry into the events. However it is not all over for Semlin. The corporate watch dog ASIC has brought charges against him for omitting some details in relation to the drug when briefing directors in 2003. The trial is set for October this year.