SINGAPORE: A local biotech company, which is being sued by Danish pharmaceutical company Novo Nordisk for suspected fraud, has had its global assets frozen.
The legal dispute stems from Novo Nordisk’s 2023 acquisition of Ocedurenone, a hypertension drug developed by KBP, for US$1.3 billion. However, subsequent clinical trials revealed that the drug was ineffective. As a result, Novo Nordisk reported an US$800 million loss last year.
Novo Nordisk then sought legal action, filing an application with the Singapore International Commercial Court (SICC) to freeze the assets of KBP and its founder Huang Zhenhua worldwide. The court granted the request last Friday.
SICC President, Justice Philip Jeyaretnam, said that Novo Nordisk had established a strong case under New York law, arguing that KBP had intentionally withheld critical clinical trial data indicating the drug’s lack of efficacy.
The next stage of the legal battle will take place in New York, where Novo Nordisk plans to initiate arbitration proceedings against KBP. The Danish firm is seeking US$830 million in damages, according to Reuters.