RedHill Wins New York Supreme Court Appeal, Upholding $10 Million Summary Judgment Against Kukbo

Rhea-AI Summary

RedHill Biopharma (Nasdaq: RDHL) has secured a significant legal victory as the New York Supreme Court upheld its original summary judgment against Kukbo Co. Ltd. The court dismissed Kukbo's defense and confirmed RedHill's compliance with agreement obligations.

The total award amounts to approximately $10 million, consisting of an $8.25 million original award plus $1.82 million for legal costs and expenses, including 9% statutory interest. Additionally, RedHill obtained an asset attachment order from Korea's Incheon District Court, preventing Kukbo from disposing of assets before judgment enforcement.

Positive

• Court victory securing approximately $10 million in total awards
• Additional asset attachment order from Korean court preventing Kukbo from disposing assets
• 9% statutory interest accrual increasing the value of the award

Negative

• Kukbo retains the right to further appeal the Court's ruling
• Uncertainty around timeline for actual payment collection

News Market Reaction – RDHL

+27.17% 1139.6x vol

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+27.17% News Effect

+38.9% Peak Tracked

-12.0% Trough Tracked

+$2M Valuation Impact

$8M Market Cap

1139.6x Rel. Volume

On the day this news was published, RDHL gained 27.17%, reflecting a significant positive market reaction. Argus tracked a peak move of +38.9% during that session. Argus tracked a trough of -12.0% from its starting point during tracking. Our momentum scanner triggered 29 alerts that day, indicating elevated trading interest and price volatility. This price movement added approximately $2M to the company's valuation, bringing the market cap to $8M at that time. Trading volume was exceptionally heavy at 1139.6x the daily average, suggesting very strong buying interest.

Data tracked by StockTitan Argus on the day of publication.

The New York Supreme Court has, on appeal, upheld its original summary judgment ruling in favor of RedHill

The New York Supreme Court unequivocally dismissed Kukbo Co. Ltd's ("Kukbo") defense again, further ruling that RedHill had fulfilled its agreement obligations even after Kukbo's breach

RedHill has been granted approximately $10 million in total awards comprised of the $8.25 million original award and a subsequent $1.82 million award for legal costs and expenses (including 9% statutory interest accrual)

RALEIGH, N.C., and TEL AVIV, Israel, Sept. 29, 2025 /PRNewswire/ -- RedHill Biopharma Ltd. (Nasdaq: RDHL) ("RedHill" or the "Company"), a specialty biopharmaceutical company, today announced that The New York Supreme Court has, on appeal, upheld its original summary judgment ruling and award in favor of RedHill, unequivocally dismissing, once again, the entirety of Kukbo Co. Ltd's ("Kukbo") defense, ruling that Kukbo was in breach of both the original subscription agreement and subsequent exclusive license agreements with the Company (the "Agreements").

 

 

In making its appeal judgment, the New York Supreme Court clearly stated that RedHill had properly fulfilled its obligations according to the Agreements, even after Kukbo's non-payment breach.

RedHill has been granted approximately $10 million in total awards from related court actions, comprised of the $8.25 million original award and a subsequent $1.82 million award for legal costs and expenses (including 9% ongoing statutory interest accrual). Kukbo has the right to further appeal the Court's ruling.

In addition, to the New York Supreme Court case, RedHill recently won an attachment grant against Kukbo, from Korea's Incheon District Court, providing a court-ordered seizure (attachment) of Kukbo's assets, preventing their disposal prior to judgment enforcement.

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]. 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 anti-inflammatory, antiviral, and anticancer activity, targeting multiple indications with U.S. government and academic collaborations for development for radiation and chemical exposure indications such as GI-Acute Radiation Syndrome (GI-ARS), a Phase 2/3 program for hospitalized COVID-19, and a Phase 2 study in prostate cancer in combination with darolutamide; (ii) RHB-204, a next-generation optimized formulation of RHB-104, with a planned Phase 2 study for Crohn's disease (based on RHB-104's positive Phase 3 Crohn's disease study results) and Phase 3-stage for pulmonary nontuberculous mycobacteria (NTM) disease; (iii) 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 (iv) RHB-102, with potential UK submission for chemotherapy and radiotherapy induced nausea and vomiting, positive results from a U.S. Phase 3 study for acute gastroenteritis and gastritis and positive results from a U.S. 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. 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: market and other conditions; 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 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 10, 2025. 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.

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

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

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

Category: Corporate

View original content:https://www.prnewswire.com/news-releases/redhill-wins-new-york-supreme-court-appeal-upholding-10-million-summary-judgment-against-kukbo-302569391.html

SOURCE RedHill Biopharma Ltd.

FAQ

What is the total amount awarded to RedHill Biopharma in the New York Supreme Court case against Kukbo?

RedHill was awarded approximately $10 million in total, comprising an $8.25 million original award and $1.82 million for legal costs and expenses, including 9% statutory interest.

What did the New York Supreme Court rule in RedHill's appeal against Kukbo?

The Court upheld its original summary judgment in favor of RedHill, dismissing Kukbo's defense and confirming that RedHill had properly fulfilled its agreement obligations even after Kukbo's breach.

What additional legal action did RedHill secure against Kukbo in Korea?

RedHill obtained an attachment grant from Korea's Incheon District Court, allowing for court-ordered seizure of Kukbo's assets to prevent their disposal before judgment enforcement.

Can Kukbo challenge the New York Supreme Court's ruling against them?

Yes, Kukbo maintains the right to further appeal the Court's ruling, though the original judgment has been upheld on the first appeal.