Novo Nordisk Pursues $830 Million Fraud Claim Against KBP Biosciences Over Failed Hypertension Drug

Novo Nordisk is seeking $830 million in damages from KBP Biosciences over alleged fraud related to the hypertension drug ocedurenone12.

The Singapore International Commercial Court has ordered a worldwide asset freeze against KBP Biosciences and its founder, Huang Zhenhua26.

Novo Nordisk claims KBP withheld crucial data showing ocedurenone's inefficacy and quality issues at a trial site that produced anomalous positive results12.

The dispute stems from a $1.3 billion deal in 2023 where Novo Nordisk acquired the rights to ocedurenone from KBP Biosciences56.

In June 2024, Novo Nordisk announced the failure of ocedurenone's Phase III CLARION-CKD trial, resulting in a $818.9 million impairment loss5.

Novo Nordisk plans to initiate arbitration proceedings in New York to pursue its fraud claim against KBP Biosciences36.

The case highlights the risks associated with pharmaceutical licensing deals and the importance of due diligence in drug development partnerships8.

Sources:

1. https://www.capitalbrief.com/briefing/novo-nordisk-seeks-us830m-over-biotech-fraud-8b1baa43-302a-4768-9945-fab7db6c91db/

2. https://usaherald.com/novo-nordisk-secures-830m-fraud-freeze-in-global-asset-battle/

3. https://www.law360.com/healthcare-authority/articles/2299262/healthcare-authority/other

5. https://www.biospace.com/novo-ends-phase-iii-kidney-disease-trial-incurs-more-than-800m-impairment-loss-in-q2

6. https://www.benzinga.com/25/02/43812904/novo-nordisk-sues-singapore-based-kbp-biosciences-over-alleged-data-misrepresentation-in-13-billion-hypertension-drug-deal-seeks-over-800-million-in-damages

8. https://pharmaphorum.com/news/when-licensing-deals-go-bad-novo-sues-kbp-bio-830m