New York court upholds $10 million judgment for RedHill against Kukbo

NEW YORK - The New York Supreme Court has upheld its original summary judgment ruling in favor of RedHill Biopharma Ltd. (NASDAQ:RDHL) against Kukbo Co. Ltd., maintaining awards totaling approximately $10 million. The ruling comes as RedHill, currently valued at $6.13 million in market capitalization, holds more cash than debt on its balance sheet according to InvestingPro data.

The court dismissed Kukbo’s appeal, ruling that Kukbo breached both the original subscription agreement and subsequent exclusive license agreements with RedHill. The court also determined that RedHill had properly fulfilled its obligations under the agreements, even after Kukbo’s non-payment breach.

The total award consists of an original $8.25 million judgment plus a subsequent $1.82 million for legal costs and expenses, including ongoing 9% statutory interest accrual. Kukbo retains the right to further appeal the ruling.

In a separate legal action, RedHill recently secured an attachment grant against Kukbo from Korea’s Incheon District Court, providing a court-ordered seizure of Kukbo’s assets to prevent their disposal before judgment enforcement.

RedHill Biopharma is a specialty biopharmaceutical company focused on gastrointestinal diseases, infectious diseases, and oncology. The company promotes Talicia, an FDA-approved drug for treating Helicobacter pylori infection in adults, and has several clinical development programs in progress.

The information in this article is based on a press release statement from RedHill Biopharma.

In other recent news, RedHill Biopharma has received an extension from the Nasdaq Stock Market to regain compliance with listing requirements. The company has until October 13, 2025, to meet the minimum stockholders’ equity of $2.5 million, according to a recent SEC filing. This extension provides the company with additional time to meet the necessary financial criteria for continued listing on the exchange. Additionally, RedHill Biopharma announced a significant development concerning its Crohn’s disease drug, RHB-204. The U.S. Food and Drug Administration (FDA) has provided positive feedback on the pathway to approval for this drug. The FDA’s guidance allows RedHill to conduct a clinical trial targeting a specific population of Crohn’s disease patients infected with Mycobacterium avium subspecies paratuberculosis. This development could potentially position RHB-204 as a groundbreaking therapy if it receives approval.

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