Brickell Biotech Provides Update on Bodor Labs Complaint and Funding Agreement with NovaQuest
October 30 2019 - 4:42PM
Brickell Biotech, Inc. (“Brickell”) (NASDAQ: BBI), a clinical-stage
pharmaceutical company, today announced that it has initiated an
arbitration proceeding pursuant to Article 9 of the License
Agreement previously entered into between Bodor Laboratories, Inc.
(“Bodor”), Nicholas S. Bodor and Brickell with the American
Arbitration Association (“AAA”) in Florida against Bodor and
Nicholas S. Bodor. This arbitration seeks a declaratory judgment
that the purported termination of the License Agreement by Bodor
and Nicholas S. Bodor was invalid and unenforceable and asserts (i)
a claim for breach of the License Agreement against Bodor and
Nicholas S. Bodor, in his individual capacity, and (ii) a claim
against Bodor and Nicholas S. Bodor for tortious interference with
Brickell’s business relations. Brickell has requested
expedited treatment of the arbitration proceeding and concurrent
mandatory mediation under the AAA rules. Brickell
concurrently filed today with the United States District Court for
the Southern District of Florida a motion to dismiss the complaint
brought against Brickell by Bodor and Nicholas S. Bodor on October
24, 2019.
On October 25, 2019, NovaQuest Co-Investment Fund X, L.P.
(“NovaQuest”) provided written notice to Brickell of its
determination that a material adverse event occurred as a result of
the matter described above. As a result, NovaQuest exercised its
right to suspend further development payments under the Funding
Agreement. NovaQuest is obligated to resume development payments if
the material adverse event is resolved or cured by Brickell to
NovaQuest’s reasonable satisfaction by October 25, 2020. If the
material adverse event is not resolved or cured to NovaQuest’s
reasonable satisfaction by such date, then NovaQuest may, in its
sole discretion, terminate any future payment obligation under the
Funding Agreement and Brickell may be obligated to make certain
payments to NovaQuest.
Additionally, as a result of the matters described above, the
timeline for Brickell’s Phase 3 clinical trials in subjects with
primary axillary hyperhidrosis in the United States may be
impacted. Brickell intends to provide an update on the timeline
when there is further clarity.
About Brickell
Brickell is a clinical-stage pharmaceutical company focused on
developing innovative and differentiated prescription therapeutics
for the treatment of debilitating skin diseases. Brickell’s
pipeline consists of potential novel therapeutics for
hyperhidrosis, cutaneous T-cell lymphoma, psoriasis, and other
prevalent dermatological conditions. Brickell’s executive
management team and board of directors bring extensive experience
in product development and global commercialization, having served
in leadership roles at large global pharmaceutical companies and
biotechs that have developed and/or launched successful products,
including several that were first-in-class and/or achieved iconic
status, such as Cialis®, Taltz®, Gemzar®, Prozac®, Cymbalta® and
Juvederm®. Brickell’s strategy is to leverage this experience to
in-license, acquire, develop and commercialize innovative products
that Brickell believes can be successful in the currently
underserved dermatology global marketplace. For more information,
visit www.brickellbio.com.
Cautionary Note Regarding Forward-Looking
Statements
Any statements made in this press release relating to future
financial, business and/or research and clinical performance,
conditions, plans, prospects, trends, or strategies and other such
matters, including without limitation, the anticipated timing,
scope, design and/or results of future clinical trials and
prospects for commercializing any of Brickell’s product
candidates are forward-looking statements within the meaning of the
Private Securities Litigation Reform Act of 1995. In addition, when
or if used in this press release, the words “may,” “could,”
“should,” “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“plan,” “predict” and similar expressions and their variants, as
they relate to Brickell, may identify forward-looking statements.
Brickell cautions that these forward-looking statements are subject
to numerous assumptions, risks, and uncertainties, which change
over time, often quickly and in unanticipated ways.
Further information on the factors and risks that could cause
actual results to differ from any forward-looking statements are
contained Brickell’s filings with the United States Securities and
Exchange Commission (SEC), which are available at www.sec.gov (or
at www.brickellbio.com). The forward-looking statements represent
the estimates of Brickell as of the date hereof only, and Brickell
specifically disclaims any duty or obligation to update
forward-looking statements.
Brickell Investor / Media Contact:Patti Bank
Managing Director, Westwicke IR@brickellbio.com
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