RedHill Biopharma Secures Kukbo Asset Freeze Following RedHill's $8.25 Million Plus Legal Fees New York Supreme Court Summary Judgment Win

Rhea-AI Summary

RedHill Biopharma (NASDAQ: RDHL) has secured a significant legal victory in its ongoing dispute with Kukbo Co. Ltd. The Incheon District Court in Korea has granted an asset freeze on Kukbo's assets, following RedHill's successful $8.25 million plus legal fees summary judgment win in the New York Supreme Court.

The judgment stems from Kukbo's failure to honor subscription and licensing agreements signed in October 2021 and March 2022. The total amount includes $1.75 million in accrued interest at 9%. While Kukbo filed a notice of appeal on December 4, 2024, they have until June 4, 2025, to perfect their appeal, subject to potential extension. The New York Supreme Court has dismissed all of Kukbo's counterclaims.

Positive

• Won $8.25 million plus legal fees summary judgment in New York Supreme Court
• Successfully secured asset freeze on Kukbo's assets in South Korea
• Continues to accrue 9% interest on the judgment amount
• All Kukbo's counterclaims were dismissed by the court

Negative

• Kukbo has filed a notice of appeal, which could delay final payment
• Collection of the judgment remains pending despite the court victory

Insights

Legal and Financial Analyst

RedHill secured a significant legal victory with an $8.25M judgment against Kukbo, strengthening its financial position despite ongoing legal proceedings.

RedHill Biopharma has achieved a significant legal milestone by securing an asset freeze on Kukbo Co. Ltd in South Korea's Incheon District Court. This attachment prevents Kukbo from disposing of assets while RedHill pursues enforcement of its $8.25 million plus legal fees judgment from the New York Supreme Court.

The judgment stems from Kukbo's failure to honor payment obligations under subscription and licensing agreements signed in October 2021 and March 2022. The $8.25 million includes approximately $1.75 million in accrued interest at a 9% rate, which continues to accrue while the judgment remains unpaid.

This development has several important implications:

• The asset freeze significantly improves RedHill's chances of collecting the full judgment amount
• The New York court's dismissal of all Kukbo's counterclaims strengthens RedHill's legal position
• The continuing 9% interest accrual increases the potential recovery amount over time

While Kukbo has filed a notice of appeal on December 4, 2024, they have until June 4, 2025, to perfect this appeal, which they may or may not pursue. The Korean court's attachment grant demonstrates RedHill's strategic approach to ensuring recovery regardless of appeal proceedings.

For a specialty biopharmaceutical company like RedHill, securing this judgment and taking concrete steps toward collection represents a material financial development that could strengthen its balance sheet and provide additional resources for its pharmaceutical development programs.

Korea's Incheon District Court attachment grant prevents asset disposal by Kukbo prior to enforcement, following the New York Supreme Court's approximately $8.25 million plus legal fees and costs summary judgment in favor of RedHill

--

The New York Supreme Court dismissed all Kukbo's counterclaims

--

Latest Court victory demonstrates RedHill's commitment to collection of the court-mandated award, upon which 9% interest continues to be accruable

RALEIGH, N.C. and TEL-AVIV, Israel, May 13, 2025 /PRNewswire/ -- RedHill Biopharma Ltd. (NASDAQ: RDHL) ("RedHill" or the "Company"), a specialty biopharmaceutical company, today announced that it had won its attachment petition to the Court in South Korea on Kukbo Co. Ltd's ("Kukbo") assets, following the approximately $8.25 million plus legal fees and costs summary judgment ruling in RedHill's favor by the New York Supreme Court.

An attachment petition in South Korea refers to a court-ordered seizure (attachment) of a debtor's assets to secure a claim before or during a lawsuit, designed to prevent the debtor from disposing of assets before the creditor can enforce a judgment.

RedHill's approximately $8.25 million summary judgment win includes approximately $1.75 million in accrued interest at 9%, emanating from Kukbo's failure to pay RedHill according to the terms of subscription and licensing agreements signed by the two companies in October 2021 and March 2022, respectively. Additionally, and in accordance with the court's ruling, a motion has been filed to recover legal fees and costs.

Kukbo has a right to seek an appeal of the judgment, and on December 4, 2024, filed a notice of appeal, upon which they may or may not choose to act. Kukbo has six months from filing of the notice, until June 4, 2025, to perfect its appeal, subject to potential extension.

About RedHill Biopharma 

RedHill Biopharma Ltd. (Nasdaq: RDHL) is a specialty biopharmaceutical company primarily focused on U.S. development and commercialization of drugs for gastrointestinal diseases, infectious diseases and oncology. RedHill promotes the FDA approved gastrointestinal drug Talicia^®, for the treatment of Helicobacter pylori (H. pylori) infection in adults^[1], with submission planned for marketing authorization in other territories. RedHill's key clinical late-stage development programs include: (i) opaganib (ABC294640), a first-in-class, orally administered sphingosine kinase-2 (SPHK2) selective inhibitor with anticancer, anti-inflammatory and antiviral activity, targeting multiple indications with U.S. government and academic collaborations for development for radiation and chemical exposure indications such as Gastrointestinal-Acute Radiation Syndrome (GI-ARS), a Phase 2 study in prostate cancer in combination with Bayer's darolutamide and a Phase 2/3 program for hospitalized COVID-19 patients; (ii) RHB-204 with a planned Phase 2 study for Crohn's disease and Phase 3-stage for pulmonary nontuberculous mycobacterial (NTM) disease; (iii) RHB-104, with positive results from a first Phase 3 study for Crohn's disease; (iv) RHB-107 (upamostat), an oral broad-acting, host-directed, serine protease inhibitor with potential for pandemic preparedness, is in late-stage development as a treatment for non-hospitalized symptomatic COVID-19 and is also targeting multiple other cancer and inflammatory gastrointestinal diseases; and  (v) RHB-102, with potential UK submission for chemotherapy and radiotherapy induced nausea and vomiting, positive results from a Phase 3 study for acute gastroenteritis and gastritis and positive results from a Phase 2 study for IBS-D. RHB-102 is partnered with Hyloris Pharma (EBR: HYL) for worldwide development and commercialization outside North America.

More information about the Company is available at www.redhillbio.com / X.com/RedHillBio.

Forward Looking Statements

This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 and may discuss investment opportunities, stock analysis, financial performance, investor relations, and market trends. Such statements may be preceded by the words "intends," "may," "will," "plans," "expects," "anticipates," "projects," "predicts," "estimates," "aims," "believes," "hopes," "potential" or similar words and include, among others, statements regarding the potential outcome of litigation against Kukbo Co. Ltd. Forward-looking statements are based on certain assumptions and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified, and consequently, actual results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation: the risk that the Company's attempts to receive the judgment awarded against Kukbo by the New York Supreme Court may not be successful; the risk that the Company may not submit a UK MAA for Talicia and if it does that submission may not be successful; the risk that the development of RHB-204 for Crohn's disease may not be completed and if completed may not be successful; the risk that the Company will not benefit from its agreement with Hyloris as currently anticipated; the Company's ability to maintain compliance with the Nasdaq Capital Market's listing requirements; the risk that the addition of new revenue generating products or out-licensing transactions will not occur; the risk of current uncertainty regarding U.S. government research and development funding and that the U.S. government is under no obligation to continue to support development of our products and can cease such support at any time; the risk that acceptance onto the RNCP Product Development Pipeline or other governmental and non-governmental development programs will not guarantee ongoing development or that any such development will not be completed or successful; the risk that the FDA does not agree with the Company's proposed development plans for its programs; the risk that observations from preclinical studies are not indicative or predictive of results in clinical trials; the risk that the Company's development programs and studies may not be successful and, even if successful, such studies and results may not be sufficient for regulatory applications, including emergency use or marketing applications, and that additional studies may be required; the risk of market and other conditions and that the Company will not successfully commercialize its products; as well as risks and uncertainties associated with (i) the initiation, timing, progress and results of the Company's research, manufacturing, pre-clinical studies, clinical trials, and other therapeutic candidate development efforts, and the timing of the commercial launch of its commercial products and ones it may acquire or develop in the future; (ii) the Company's ability to advance its therapeutic candidates into clinical trials or to successfully complete its pre-clinical studies or clinical trials or the development of any necessary commercial companion diagnostics; (iii) the extent and number and type of additional studies that the Company may be required to conduct and the Company's receipt of regulatory approvals for its therapeutic candidates, and the timing of other regulatory filings, approvals and feedback; (iv) the manufacturing, clinical development, commercialization, and market acceptance of the Company's therapeutic candidates and Talicia; (v) the Company's ability to successfully commercialize and promote Talicia; (vi) the Company's ability to establish and maintain corporate collaborations; (vii) the Company's ability to acquire products approved for marketing in the U.S. that achieve commercial success and build its own marketing and commercialization capabilities; (viii) the interpretation of the properties and characteristics of the Company's therapeutic candidates and the results obtained with its therapeutic candidates in research, pre-clinical studies or clinical trials; (ix) the implementation of the Company's business model, strategic plans for its business and therapeutic candidates; (x) the scope of protection the Company is able to establish and maintain for intellectual property rights covering its therapeutic candidates and its ability to operate its business without infringing the intellectual property rights of others; (xi) parties from whom the Company licenses its intellectual property defaulting in their obligations to the Company; (xii) estimates of the Company's expenses, future revenues, capital requirements and needs for additional financing; (xiii) the effect of patients suffering adverse experiences using investigative drugs under the Company's Expanded Access Program; (xiv) competition from other companies and technologies within the Company's industry; and (xv) the hiring and employment commencement date of executive managers. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 20-F filed with the SEC on April 8, 2024. All forward-looking statements included in this press release are made only as of the date of this press release. The Company assumes no obligation to update any written or oral forward-looking statement, whether as a result of new information, future events or otherwise unless required by law.

Company contact:
Adi Frish
Chief Corporate & Business Development Officer
RedHill Biopharma
+972-54-6543-112
adi@redhillbio.com

Category: Corporate

[1] Talicia^® (omeprazole magnesium, amoxicillin and rifabutin) is indicated for the treatment of H. pylori infection in adults. For full prescribing information see: www.Talicia.com.

Logo: https://mma.prnewswire.com/media/1334141/5268648/RedHill_Biopharma_Logo.jpg

View original content to download multimedia:https://www.prnewswire.com/news-releases/redhill-biopharma-secures-kukbo-asset-freeze-following-redhills-8-25-million-plus-legal-fees-new-york-supreme-court-summary-judgment-win-302453661.html

SOURCE RedHill Biopharma Ltd.

FAQ

What is the total amount RedHill Biopharma (RDHL) won in the New York Supreme Court judgment against Kukbo?

RedHill won approximately $8.25 million plus legal fees and costs, which includes $1.75 million in accrued interest at 9%.

Why did RedHill Biopharma sue Kukbo Co. Ltd?

RedHill sued Kukbo for failing to pay according to the terms of subscription and licensing agreements signed in October 2021 and March 2022.

What is the significance of the Incheon District Court attachment grant for RDHL?

The attachment grant prevents Kukbo from disposing of assets before RedHill can enforce the judgment, securing RedHill's ability to collect the awarded amount.

When does Kukbo's appeal deadline expire for the RDHL judgment?

Kukbo has until June 4, 2025, to perfect its appeal, subject to potential extension, following their notice of appeal filed on December 4, 2024.