Krystal Biotech Announces Settlement with PeriphaGen, Inc.
March 15 2022 - 7:00AM
Krystal Biotech, Inc., (“Krystal”) (NASDAQ: KRYS), the leader in
redosable gene therapies for rare diseases, today announced it has
reached a binding term sheet with PeriphaGen, Inc. (“PeriphaGen”)
to resolve all claims in the trade secret litigation filed by
PeriphaGen on May 20, 2020.
Under the conditions of the term sheet, which are legally
binding, Krystal will receive all of PeriphaGen’s biological
materials and skin assets and will pay PeriphaGen $25 million
within 10 days of the completion of a Final Settlement Agreement.
The parties are expected to enter into a final settlement agreement
within 45 days of March 12, 2022. Upon approval of Krystal’s first
product by the U.S. Food and Drug Administration (FDA), Krystal
will pay an additional $12.5 million, followed by three additional
$12.5 million dollar milestone payments upon reaching $100 million
in total cumulative sales, $200 million in total cumulative sales
and $300 million in total cumulative sales reported by Krystal in
its annual 10K filing.
The settlement contains no admission of liability or wrongdoing
and includes a full release of the claims made against Krystal
Biotech, Inc., Krish Krishnan, Suma Krishnan, PeriphaGen, Inc.,
James Wechuck and David Krisky. Each party will bear their own
costs and fees. The case is expected to be formally dismissed
within a month.
“We are pleased with the outcome and with this distraction
behind us, we look forward to continued operational progress with
our proprietary redosable gene therapy platform and associated
technologies,” said Krish S. Krishnan, Chairman & CEO of
Krystal Biotech, Inc.
No further details will be discussed until a Final Settlement
Agreement is completed.
About Krystal BiotechKrystal Biotech, Inc.
(NASDAQ:KRYS) is a pivotal-stage gene therapy company leveraging
its proprietary, redosable gene therapy platform and in-house
manufacturing capabilities to potentially bring life-changing
treatment options to patients with serious diseases, including rare
diseases in skin, lung, and other areas. For more information,
please visit http://www.krystalbio.com, and follow
@KrystalBiotech on LinkedIn and Twitter.
Forward-Looking StatementsAny statements in
this press release about future expectations, plans and prospects
for Krystal Biotech, Inc., including but not limited to statements
about the binding term sheet to resolve all claims in the trade
secret litigation filed by PeriphaGen on May 20, 2020; and other
statements containing the words “anticipate,” “believe,”
“estimate,” “expect,” “intend,” “may,” “plan,” “predict,”
“project,” “target,” “potential,” “likely,” “will,” “would,”
“could,” “should,” “continue,” and similar expressions, constitute
forward-looking statements within the meaning of The Private
Securities Litigation Reform Act of 1995. Actual results may differ
materially from those indicated by such forward-looking statements
as a result of various important factors as are set forth under the
caption “Risk Factors” in Krystal’s annual and quarterly reports on
file with the U.S. Securities and Exchange Commission. In addition,
the forward-looking statements included in this press release
represent Krystal’s views as of the date of this release. Krystal
anticipates that subsequent events and developments will cause its
views to change. However, while Krystal may elect to update these
forward-looking statements at some point in the future, it
specifically disclaims any obligation to do so. These
forward-looking statements should not be relied upon as
representing Krystal’s views as of any date subsequent to the date
of this release.
CONTACTS:
Investor ContactWhitney IjemKrystal
Biotechwijem@krystalbio.com
Media ContactTiffany HamiltonKrystal
Biotechthamilton@krystalbio.com
Source: Krystal Biotech, Inc.
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