Novo Nordisk alleges fraud over ocedurenone deal, seeks up to $830 million from KBP Biosciences
The dispute is over a hypertension drug, not a GLP-1, so it does not change semaglutide medicines; at issue is whether trial data was withheld from the buyer.
Novo Nordisk is seeking up to $830 million in damages from KBP Biosciences, saying the Danish drugmaker was misled when it bought the hypertension drug ocedurenone, according to a Singapore court ruling made public on Feb. 18 [1]. The Singapore International Commercial Court also ordered a freeze on the worldwide assets of Singapore-based KBP and its founder, Huang Zhenhua [1].
The ruling was issued last Friday and released on Tuesday [1]. Judge Philip Jeyaretnam wrote, "I am satisfied that Novo has shown that it has a good arguable case against KBP for fraud under New York law, which governs the dispute" [1]. The judge said it was arguable that "KBP knowingly failed to disclose material information," including analysis of trial results showing ocedurenone's "inefficacy" [1].
Novo Nordisk announced the deal in October 2023 [1]. The agreement covered ocedurenone, a drug for uncontrolled hypertension with potential application in cardiovascular and kidney disease, and was worth up to $1.3 billion [1]. In June 2024, Novo Nordisk said it was recognizing a loss of around 5.7 billion Danish crowns, about $800 million, in connection with the drug after adverse clinical trial results [1]. The exchange rate cited in the ruling was $1 = 7.1410 Danish crowns [1].
The court said Novo Nordisk will launch arbitration proceedings against KBP in New York [1]. Novo Nordisk and KBP Biosciences did not immediately respond to requests for comment, and Huang was not immediately available for comment [1].
Why it matters for patients
Ocedurenone is a hypertension drug, not a GLP-1 medicine [1]. Semaglutide, the molecule in Novo Nordisk's Ozempic, Wegovy and Rybelsus, is not part of this dispute, and the ruling does not address the safety, labeling or supply of any GLP-1 product [1].
What the case does center on is how trial information was shared. Novo Nordisk's claim is that KBP did not disclose material information, including an analysis of results showing the drug did not work [1]. Novo Nordisk made the underlying loss public only after trial results came in, and the fraud allegation is now being tested in court rather than settled by the companies [1].
Whether ocedurenone is approved for sale anywhere, and what happened to the trial that produced the adverse results, has not been reported [1]. Novo Nordisk has not said whether the dispute affects any other part of its business [1]. For people taking or considering GLP-1 medicines, nothing in this ruling changes what is known about those products [1].
Novo Nordisk is best known for the obesity drug Wegovy, and the ocedurenone purchase was a move into a different treatment area, heart and kidney-related hypertension, rather than an addition to its weight and diabetes portfolio [1].
What happens next
Novo Nordisk intends to bring arbitration proceedings against KBP in New York, according to the Singapore court [1]. No date for filing has been reported [1].
The asset freeze on KBP Biosciences and Huang Zhenhua remains in effect under the Singapore order [1]. How long the freeze will last, and what assets it covers, has not been disclosed [1]. Neither company has commented publicly on the allegations, and no hearing schedule has been reported [1].
The amount Novo Nordisk is seeking, up to $830 million, is a claim, not a judgment [1]. No court has ruled on whether fraud occurred [1].
Sources
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