You're receiving this email because you're subscribed to Ring the Bell from Benzinga. To manage your subscription, click the link at the bottom of this email.

This message is from a valued third-party sponsor. It should not be considered a recommendation or endorsement by Benzinga.

RedHill Wins Lawsuit; New York Supreme Court Judge Orders Kukbo To Pay Up

RedHill Biopharma Ltd. (NASDAQ: RDHL), a specialty biopharmaceutical company, just won a legal battle with Kukbo Co. Ltd. of South Korea in which a Supreme Court in New York awarded it $8 million. The court also threw out counterclaims filed by Kukbo.

At the heart of the legal battle is opaganib, RedHill’s first-in-class new chemical entity with anti-inflammatory, anti-cancer and antiviral activities. RedHill Biopharma contended that Kukbo failed to make agreed payments to RedHill pursuant to a subscription agreement signed on Oct. 25, 2021, and a subsequent exclusive license agreement inked on March 14, 2022. The two were working to develop opaganib for COVID.

The Kukbo award consists of $6.5 million plus interest amounting to approximately $1.5 million, plus costs. Kukbo has a right to seek an appeal of the judgment, which may or may not be granted. RedHill intends to pursue its attorneys' fees and collection of the judgment.

"RedHill thanks the Court for this crystal-clear judgment, affirming the company's just position from the beginning of the relationship and in making correct provision for full reparation for the contractual breaches,” said Dror Ben-Asher, RedHill’s CEO.

The positive ruling comes as RedHill Biopharma is making progress in developing opaganib for infectious diseases like ebola. In October, the U.S. government’s Biomedical Advanced Research and Development Authority (BARDA), a center of the Department of Health and Human Services’ (HHS) Administration for Strategic Preparedness and Response (ASPR), selected opaganib for development to treat exposure to Ebola virus disease (EBOV).

The end of the case was hailed as a financial victory for RedHill as, once collected, it will give it more cash to develop opaganib, its pipeline, including opaganib and RHB-107, which is currently in a U.S. government-supported Phase 2 COVID-19 study. It may also boost its investors’ confidence in the company and showcases RedHill’s commitment to adhering to contracts it inks. To learn more about the lawsuit and opaganib click here.

This is a paid ad. Please see 17b disclosure here for more information.