Danish pharmaceutical company Novo Nordisk is seeking up to $830 million in damages from Singapore-based KBP Biosciences, alleging it was misled during the 2023 acquisition of a hypertension medication. The Singapore International Commercial Court has responded by freezing the global assets of KBP and its founder, Huang Zhenhua, as per a ruling made public on February 18, 2025.
In October 2023, Novo Nordisk agreed to purchase ocedurenone, a drug intended for uncontrolled hypertension with potential applications in cardiovascular and kidney diseases, from KBP Biosciences for up to $1.3 billion. However, in June 2024, Novo Nordisk reported a loss of approximately 5.7 billion Danish crowns (around $800 million) related to the drug after unfavorable clinical trial outcomes.
Judge Philip Jeyaretnam stated in the recent ruling that Novo Nordisk has presented a “good arguable case against KBP for fraud under New York law,” which governs the dispute. The judge further noted that it is arguable that “KBP knowingly failed to disclose material information,” including analyses of trial results indicating ocedurenone’s inefficacy.
Novo Nordisk plans to initiate arbitration proceedings against KBP in New York. Both companies, as well as Huang Zhenhua, have not yet responded to requests for comment.
This legal action underscores the challenges pharmaceutical companies face during mergers and acquisitions, particularly concerning the accuracy and completeness of disclosed information during such transactions.
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