Arbutus Is Granted a Pre-trial Injunction Restraining Acuitas From Entering Into Agreements Sublicensing Arbutus LNP Technolo...
February 08 2017 - 6:00AM
Arbutus Biopharma Corporation (Nasdaq:ABUS), an industry-leading
therapeutic solutions company focused on developing a cure for
chronic hepatitis B virus (HBV) infection, today announced that the
Supreme Court of British Columbia granted Arbutus’ request for a
pre-trial injunction against Acuitas, preventing Acuitas from
sublicensing Arbutus’ lipid nanoparticle (LNP) technology until the
end of October, or further order of the Court. Under the
terms of the pre-trial injunction, Acuitas is prevented from
entering into any new agreements which include sublicensing of
Arbutus’ LNP.
"We are gratified by the Court’s decision to
grant a pre-trial injunction against Acuitas to stop Acuitas from
granting unauthorized licenses and use of our LNP technology," said
Dr. Mark J. Murray, Arbutus’ President and CEO. "We will continue
to defend against unauthorized use of our LNP technology.
Arbutus intends to leverage LNP to generate non-dilutive capital to
help fund development of our HBV pipeline.”
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. 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.
About Arbutus Biopharma
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, Canada with
facilities in Doylestown, PA, USA. 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
continuing to defend against unauthorized use of our LNP
technology; leveraging LNP to generate non-dilutive capital to help
fund development of our HBV pipeline; and developing and
commercializing a cure for patients suffering from chronic HBV
infection.
With respect to the forward-looking statements contained in this
press release, Arbutus has made numerous assumptions regarding,
among other things: the decisions 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 not decide in favour of Arbutus; 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
Helia Baradarani
Senior Manager, Investor Relations
Phone: 604.419.3200
Email: hbaradarani@arbutusbio.com
Media
Please direct all media inquiries to: media@arbutusbio.com
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