RedHill Biopharma Wins $8 Million Judgment in Contract Dispute with Kukbo Co.
TL;DR
RedHill Biopharma wins $8 million in breach of contract lawsuit, boosting investor confidence and eliminating potential stock overhang.
RedHill Biopharma sued Kukbo over a breach of contract related to opaganib, a first-in-class orally administered SPHK2 selective inhibitor targeting multiple indications.
The ruling gives RedHill Biopharma more cash to develop its pipeline, paving the way for progress in developing opaganib for infectious diseases such as Ebola.
RedHill Biopharma's opaganib delivers a statistically significant increase in patient survival time when given at 150 mg/kg twice a day, showing activity in EBOV.
Found this article helpful?
Share it with your network and spread the knowledge!
The Supreme Court of New York has ruled in favor of RedHill Biopharma Ltd. (NASDAQ: RDHL) in a breach of contract lawsuit against Kukbo Co. Ltd. of South Korea, awarding the specialty biopharmaceutical company approximately $8 million plus costs. The judgment, which includes $6.5 million in damages and $1.5 million in interest, stems from Kukbo's failure to make agreed payments under a subscription agreement and an exclusive license agreement related to the development of opaganib for COVID-19.
This legal victory is significant for RedHill Biopharma, as it not only provides a substantial financial boost but also affirms the company's position in contractual disputes. The additional funds could play a crucial role in advancing RedHill's drug development pipeline, particularly its work on opaganib, a first-in-class orally administered sphingosine kinase-2 inhibitor with potential applications in cancer, inflammation, and antiviral treatments.
The court's decision comes at a time when RedHill is making notable progress in its pharmaceutical research. Recently, the company announced that opaganib had been selected by the U.S. Biomedical Advanced Research and Development Authority (BARDA) for development as a treatment for Ebola virus disease. This selection, coupled with the positive outcome of the lawsuit, may enhance investor confidence in RedHill's prospects.
The implications of this judgment extend beyond the immediate financial gain. It demonstrates RedHill's ability to protect its interests and enforce contractual obligations, which is crucial in the pharmaceutical industry where partnerships and licensing agreements are common. Moreover, the resolution of this legal matter allows the company to focus more fully on its core business of drug development and commercialization.
While Kukbo retains the right to appeal the judgment, RedHill intends to pursue recovery of its attorneys' fees and collection of the awarded sum. The outcome of this case may serve as a precedent for similar disputes in the biopharmaceutical sector, underscoring the importance of adhering to contractual agreements in research and development partnerships.
As RedHill Biopharma moves forward with its development programs, including those for opaganib in various indications, the financial and reputational boost from this legal victory could play a significant role in shaping the company's future trajectory in the competitive pharmaceutical market.
Curated from News Direct
