Arbutus Injunction Survives Attempted Appeal by Acuitas
April 13 2017 - 8:00AM
Arbutus Biopharma Corporation (Nasdaq:ABUS), an industry-leading
Hepatitis B Virus (HBV) therapeutic solutions company, today
announced that a justice of the Court of Appeal for British
Columbia denied an attempt by Acuitas Therapeutics to appeal the
injunction issued by the Supreme Court of British Columbia, which
prevents Acuitas from any further licensing of Arbutus’ lipid
nanoparticle (LNP) technology.
“Arbutus is the industry leader in LNP
technology which is enabling the future of mRNA therapeutics,” said
Dr. Mark J. Murray, Arbutus’ President and CEO. “We are gratified
that the Court has denied Acuitas’ attempt to appeal the
injunction, which prevents Acuitas from further sublicensing
Arbutus’ LNP technology. The injunction was issued by the
Court in response to an Acuitas initiated lawsuit against Arbutus.
We believe LNP technology is a valuable asset which, in additional
to our HBV pipeline, will drive the value of Arbutus.”
Background on Acuitas
Cross-License
Consistent with the terms of the settlement
agreement signed in November 2012, Arbutus finalized and entered a
cross-license agreement with Acuitas in December 2013. The terms of
the cross-license agreement provide Acuitas with access to certain
of Arbutus’ earlier IP generated prior to mid-April 2010. At the
same time, the terms provide Arbutus with access to certain of
Acuitas’ technology and licenses in the RNAi field, along with a
percentage of each milestone and royalty payment with respect to
certain products. To date Acuitas has announced four sub-licenses
of the technology to Moderna Therapeutics.
Background on Acuitas License
Dispute
On August 29, 2016, Arbutus provided Acuitas
with notice that Arbutus considered Acuitas to be in material
breach of the companies’ cross-license agreement, citing
sublicenses with third party Moderna. The cross-license
agreement provides that it may be terminated upon any material
breach by the other party 60 days after receipt of written notice
of termination describing the material breach in reasonable
detail. On October 25, 2016, Acuitas filed a Notice of Civil
Claim in the Supreme Court of British Columbia seeking an order
that Arbutus perform its obligations under the Cross License
Agreement, for damages ancillary to specific performance,
injunctive relief, interest and costs. Arbutus disputed
Acuitas’ position and filed a response within the time frame
prescribed by the Court. Arbutus also filed a counterclaim
seeking, among other relief, a declaration that the Cross License
Agreement had been terminated. On January 10, 2017, Arbutus
filed an application seeking an order to enjoin Acuitas from, inter
alia, entering into any further agreements purporting to sublicense
Arbutus’ technology from the date of the order to the date of trial
or further order from the court. Acuitas filed a response to
Arbutus’ application and the matter was the subject of a hearing on
January 26, 2017, which resulted in the Supreme Court of British
Columbia granting a pre-trial injunction against Acuitas. In
reaching its decision to grant the pre-trial injunction, the Court
“agree[d] that Arbutus has a strong case,” on the evidence before
it, that Acuitas was in breach of its agreement with Arbutus.
Under the terms of the pre-trial injunction, Acuitas is prevented
from entering into any new agreements which include sublicensing of
Arbutus’ LNP, or providing, disclosing or otherwise conveying
Arbutus’ technology to any third parties outside of existing
agreements until the end of October, or further order of the
Court. On March 7, 2017, Acuitas appealed the injunction
decision and on April 3, 2017, the appeal was denied. The case
regarding the termination of Acuitas’ license from Arbutus will be
tried in court subject to scheduling.
About Arbutus
Arbutus Biopharma Corporation is a
biopharmaceutical company dedicated to discovering, developing and
commercializing a cure for patients suffering from chronic HBV
infection. Arbutus is headquartered in Vancouver, BC, and has
facilities in Doylestown, PA. For more information, visit
www.arbutusbio.com.
Forward-Looking Statements and
Information
This press release contains forward-looking
statements within the meaning of the Section 27A of the Securities
Act of 1933 and Section 21E of the Securities Exchange Act of 1934,
and forward looking information within the meaning of Canadian
securities laws (collectively, “forward-looking statements”).
Forward-looking statements in this press release include statements
about preventing Acuitas from any further licensing of LNP
technology; driving the value of Arbutus using our LNP technology
and HBV pipeline; and developing and commercializing a cure for
chronic hepatitis B virus (HBV) infection.
With respect to the forward-looking statements
contained in this press release, Arbutus has made numerous
assumptions regarding, among other things: the continued support of
the Court; the continued demand for Arbutus’ assets; and the
stability of economic and market conditions. While Arbutus
considers these assumptions to be reasonable, these assumptions are
inherently subject to significant business, economic, competitive,
market and social uncertainties and contingencies.
Additionally, there are known and unknown risk
factors which could cause Arbutus' actual results, performance or
achievements to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements contained herein. Known risk factors
include, among others: the Court may no longer support the
injunction; economic and market conditions may worsen; and market
shifts may require a change in strategic focus.
A more complete discussion of the risks and
uncertainties facing Arbutus appears in Arbutus' Annual Report on
Form 10-K and Arbutus' continuous disclosure filings, which are
available at www.sedar.com and at www.sec.gov. All forward-looking
statements herein are qualified in their entirety by this
cautionary statement, and Arbutus disclaims any obligation to
revise or update any such forward-looking statements or to publicly
announce the result of any revisions to any of the forward-looking
statements contained herein to reflect future results, events or
developments, except as required by law.
Contact Information
Investors
Adam Cutler
Senior Vice President, Corporate Affairs
Phone: 604-419-3200
Email: acutler@arbutusbio.com
Tiffany Tolmie
Manager, Investor Relations
Phone: 604-419-3200
Email: ttolmie@arbutusbio.com
Media
David Schull
Russo Partners
Phone: 858.717.2310
Email: david.schull@russopartnersllc.com
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