RedHill Biopharma Secures $8 Million Legal Victory in Contract Dispute with Korean Firm

The Supreme Court of New York ruled in favor of RedHill Biopharma Ltd. in a breach of contract lawsuit against South Korea's Kukbo Co. Ltd., awarding the specialty biopharmaceutical company approximately $8 million plus costs. The judgment includes $6.5 million in damages and roughly $1.5 million in interest, representing a major legal and financial victory for RedHill. The lawsuit originated from Kukbo's failure to make agreed-upon payments under a subscription agreement signed in October 2021 and a subsequent exclusive license agreement from March 2022, both related to the development of opaganib for COVID-19 treatment.

Opaganib is RedHill's first-in-class orally administered sphingosine kinase-2 selective inhibitor with anticancer, anti-inflammatory, and antiviral properties. The drug is part of several U.S. government and academic collaborations, including development for radiation and chemical exposure indications such as Acute Radiation Syndrome, a phase 2/3 program for hospitalized COVID-19 patients, and a phase 2 program in oncology. The court's decision not only awards RedHill the substantial sum but also dismisses Kukbo's counterclaims, with Dror Ben-Asher, RedHill's CEO, expressing gratitude for what he called the court's "crystal-clear judgment" affirming the company's position.

This legal victory carries significant implications for RedHill Biopharma as the awarded funds will provide additional capital to further develop its pipeline once collected. The resolution of this litigation removes a potential source of uncertainty for investors, potentially boosting confidence in the company's future prospects. The timing coincides with RedHill's progress in developing opaganib for other infectious diseases, notably Ebola, where the U.S. government's Biomedical Advanced Research and Development Authority selected opaganib for development to treat Ebola virus disease under a cost-sharing agreement detailed at https://www.medicalcountermeasures.gov/barda/cbrn/ebola/.

In an in vivo EBOV study conducted with the United States Army Medical Research Institute of Infectious Diseases, opaganib demonstrated a statistically significant increase in patient survival time when administered at 150 mg/kg twice daily. RedHill Biopharma reports that opaganib is the first host-directed molecule to show activity against EBOV, marking a potential breakthrough in treating this deadly disease. The positive court ruling, combined with progress in opaganib's development for various indications, positions RedHill Biopharma as a company to watch in the biopharmaceutical sector.

The resolution of the legal dispute with Kukbo allows RedHill to focus more fully on its drug development efforts and potentially attract increased investor interest. As the company moves forward with research and development programs in areas of high unmet medical need such as Ebola and other infectious diseases, the financial boost from this legal victory could play a crucial role in accelerating progress. RedHill's ability to secure collaborations with U.S. government agencies further underscores the potential significance of its drug candidates in addressing critical health challenges, including its work on opaganib's development for radiation exposure indications at https://www.medicalcountermeasures.gov/barda/cbrn/radiation-medical-countermeasures/.