Novo Nordisk alleges fraud after $1.3 billion deal to buy hypertension drug from KBP Biosciences
The Singapore International Commercial Court at the request of Novo Nordisk ordered the freezing of the worldwide assets of Singapore-based KBP and its founder Huang Zhenhua, according to the ruling last Friday, which was made public on Tuesday.
The court said Novo Nordisk will launch arbitration proceedings against KBP in New York.
Novo Nordisk, best known for blockbuster obesity drug Wegovy, and KBP Biosciences did not immediately respond to a request for comment. Huang was not immediately available for comment.
The Danish company announced a deal in October 2023 to buy ocedurenone, a drug for uncontrolled hypertension with potential application in cardiovascular and kidney disease, from KBP Biosciences for up to $1.3 billion.
However, in June 2024 Novo Nordisk said it was recognising a loss of around 5.7 billion Danish crowns ($800 million) in relation to the drug after adverse clinical trial results.
"I am satisfied that Novo has shown that it has a good arguable case against KBP for fraud under New York law, which governs the dispute," Judge Philip Jeyaretnam said in his ruling last Friday.
The judge added that it was arguable "KBP knowingly failed to disclose material information", including analysis of trial results which showed ocedurenone's "inefficacy."
($1 = 7.1410 Danish crowns)
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