Singapore biotech tycoon Huang Zhenhua’s assets frozen in US$830 million legal battle with pharma giant

SINGAPORE: Pharmaceutical giant Novo Nordisk is taking legal action in a Singapore court, seeking damages of up to US$830 million (S$1.1 billion) after alleging that local biotech firm KBP Biosciences misled the Danish company regarding the effectiveness of an experimental hypertension drug. The case centres on ocedurenone, a drug purchased by Novo Nordisk for up to US$1.3 billion in late 2023, which the company now claims was ineffective as promised.

A misleading partnership

According to the latest report from The Star, KBP Biosciences, founded by Huang Zhenhua, is accused of failing to disclose crucial information about ocedurenone’s clinical trial results, leading Novo to believe the drug was an effective treatment for hypertension and kidney disease. The drug had generated considerable interest, with Novo purchasing it as part of its expansion into cardiovascular treatments. However, less than a year after the acquisition, Novo halted a major clinical trial after the treatment failed to show expected results, leading to an impairment loss of approximately US$800 million.

The Singapore International Commercial Court has since frozen the assets of KBP Biosciences and its founder Huang, with the court suggesting that Huang “arguably knew and participated in these misrepresentations.” Legal proceedings are also being launched against KBP Biosciences in New York.

Huang’s background and the alleged deception

Huang, who founded KBP Biosciences in 2011, has come under scrutiny in the wake of the claims. He owns 40% of the company, and it is suggested that he played a role in the company’s failure to disclose material information about the drug’s efficacy. Huang has a history in the pharmaceutical industry, having served as an executive director and shareholder of Sihuan Pharmaceutical Holdings Group before it was delisted from the Singapore Exchange in 2009. The controversy surrounding this case continues to unfold as Novo Nordisk presses for accountability over its substantial financial losses.