Singapore biotech Bigshot Huang Zhenhua’s assets frozen over US$830m suit after misleading Novo Nordisk on ‘new and effective’ hypertension, Guess his

[k1976]

Novo Nordisk, best known for its blockbuster obesity drug Wegovy, is seeking up to US$830 million (RM3.7 billion) in damages and has also initiated legal proceedings against KBP Biosciences in New York, according to the Singapore court.

The Danish drugmaker acquired the medicine, ocedurenone, from KBP Biosciences in late 2023 in a deal worth up to US$1.3 billion.

Less than a year later, it halted clinical trials after finding the treatment ineffective, leading to an impairment loss of about US$800 million.

The court ruling stated that KBP Biosciences and Huang had “developed a new and effective drug to treat hypertension and kidney disease” but “failed to disclose material information,” including interim analyses of clinical trial results.

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The judge said Huang “arguably knew and participated in these misrepresentations” and that KBP Biosciences “knowingly failed to disclose material information,” including analyses showing ocedurenone’s “inefficacy.”

Founded in 2011, KBP Biosciences is headquartered in Singapore with offices in China and the US.

Huang, who hails from Shandong, owns 40 per cent of the company, according to media reports.

He and his wife, Cai Jun, who became Singapore citizens, purchased a bungalow on Jalan Tupai near Orchard Road for S$32.5 million, The Business Timesreported in June 2024.

Huang was previously an executive director and shareholder of Sihuan Pharmaceutical Holdings Group, which was delisted from the Singapore Exchange in 2009 following a S$458 million takeover offer

 

[k1976]

SERIAL ENTREPRENEUR"​

Originally from Shandong, China before becoming a Singaporean, Dr Huang has been described in various media reports as a "serial entrepreneur".

According to KBP's website, he has been involved in drug research and development for over 20 years, and obtained his PhD from Shenyang Pharmaceutical University.

He founded Xuanzhu Biopharm in 2002 and sold the company to Sihuan Pharmaceutical Holdings in 2012. He was also an executive director and shareholder of Sihuan, before its delisting from the Singapore Exchange (SGX) in 2009. It relisted in Hong Kong in 2010.

Dr Huang founded KBP in 2011 in Shandong, with Judge Philip Jeyaretnam noting in his ruling that he owns a 40 per cent stake in the company, which is currently incorporated in Singapore.

KBP also lists an office at International Plaza along Anson Road as its global headquarters, and has operations in China and the United States.

 

[k1976]

Novo Nordisk is seeking up to US$830 million in damages from KBP Biosciences, according to a ruling by a Singapore court, as the Danish drugmaker says it was misled when it bought a new hypertension drug from KBP in 2023.

The Singapore International Commercial Court, at the request of Novo Nordisk, ordered the freezing of the worldwide assets of Singapore-based KBP and its founder Huang Zhenhua, according to the ruling last Friday (Feb 14), which was made public on Tuesday.

The court said Novo Nordisk will launch arbitration proceedings against the Shandong-founded KBP in New York.

Novo Nordisk, best known for blockbuster obesity drug Wegovy, and KBP Biosciences did not immediately respond to a request for comment. Huang was not immediately available for comment.

The Danish company announced a deal in October 2023 to buy ocedurenone, a drug for uncontrolled hypertension with potential application in cardiovascular and kidney disease, from KBP Biosciences for up to US$1.3 billion.

However, in June 2024 Novo Nordisk said it was recognising a loss of around 5.7 billion Danish crowns (US$800 million) in relation to the drug after adverse clinical trial results.