Novo Nordisk Seeks $830 Million Over Fraud Claims Against KBP Biosciences

Novo Nordisk A/S has filed for a worldwide asset freeze against KBP Biosciences and its founder, Dr. Huang Zhenhua, claiming that KBP misled them about the effectiveness of the hypertension drug Ocedurenone. The Danish drugmaker is seeking $830 million in damages after the drug failed to meet its primary endpoint in clinical trials, leading Novo to incur significant losses. A Singapore court ruled in favor of Novo, stating that it had a strong case for fraud, as KBP allegedly did not disclose critical trial data indicating the drug's ineffectiveness. In October 2023, Novo Nordisk had agreed to acquire Ocedurenone for up to $1.3 billion, but it later recognized an impairment loss of approximately $800 million related to the drug. The judge noted that KBP's misrepresentations included information about trial results and compliance issues at a testing site. Novo Nordisk plans to continue its legal action through arbitration in New York.