Antibe Therapeutics saw a significant drop in its shares following an arbitration ruling involving a license agreement for its key drug candidate in Greater China.
Dispute Resolution Impact
The biotechnology company experienced a 41% decrease in its shares, settling at C$0.57 in morning trading. This loss has reduced the overall 12-month advance to just under 10%.
The arbitration decision favored Nuance Pharma in the disagreement related to otenaproxesul, a potential alternative to opioids and current anti-inflammatory medications. The ruling, issued by the Singapore International Arbitration Centre, resulted in the termination of the license agreement.
Financial Implications
As a result of the ruling, Antibe is required to refund an upfront payment of $20 million to Nuance Pharma. Additionally, they must cover interest and costs amounting to approximately $4 million.
Despite the company’s disagreement with the decision, they have announced their acceptance as the ruling is not subject to appeal.
Future Development Plans
Antibe is currently reassessing its development plans and milestones for the remainder of 2024. Adjustments may be made to timelines as a response to the recent events.
While addressing the potential highlighted in a recent study on otenaproxesul, the company remains focused on expediting the Phase 2 trial at the earliest opportunity.