The Supreme Court of New York has delivered a significant legal and financial victory to RedHill Biopharma Ltd. by ruling in its favor in a breach of contract lawsuit against South Korea's Kukbo Co. Ltd., awarding approximately $8 million plus costs. This judgment, comprising $6.5 million in damages and about $1.5 million in interest, stems from Kukbo's failure to fulfill payment obligations under agreements related to the development of opaganib, a novel drug with potential applications in treating COVID-19, among other diseases.
Opaganib, a first-in-class orally administered sphingosine kinase-2 (SPHK2) selective inhibitor, is at the heart of several U.S. government and academic collaborations. Its development for conditions such as Acute Radiation Syndrome (ARS) and its investigation in phase 2/3 programs for COVID-19 patients highlight its therapeutic potential. The court's dismissal of Kukbo's counterclaims and the affirmation of RedHill's position underscore the clarity of the judgment, as noted by RedHill's CEO, Dror Ben-Asher.
This legal triumph not only provides RedHill with additional capital to advance its drug pipeline but also eliminates a layer of uncertainty for investors, potentially enhancing the company's appeal in the biopharmaceutical sector. The timing of this victory is particularly auspicious, coinciding with RedHill's announcement of opaganib's selection by the U.S. government's Biomedical Advanced Research and Development Authority (BARDA) for development against Ebola virus disease (EBOV). This partnership, supported by partial funding from BARDA, aims to leverage opaganib's demonstrated efficacy in increasing survival rates in EBOV studies.
The combination of legal vindication and progress in opaganib's development for critical health challenges positions RedHill Biopharma as a noteworthy entity in the biopharmaceutical industry. The resolution of the lawsuit with Kukbo allows the company to concentrate on its research and development endeavors, with the financial injection from the court ruling likely to accelerate its projects. RedHill's collaborations with U.S. government agencies further attest to the potential impact of its drug candidates in addressing pressing medical needs.
