KBP Biosciences Fails to Unfreeze Assets in Major Lawsuit
A significant legal development has unfolded in Singapore as the Singapore International Commercial Court (SICC) has dismissed an application by biotech firm KBP Biosciences to set aside a worldwide freezing order on its assets. This decision comes as part of an ongoing high-stakes legal battle with Danish pharmaceutical giant Novo Nordisk, which is seeking to recover up to S$830 million in damages. The core of Novo Nordisk’s claim alleges that the Singapore-based company and its founder misled the drugmaker about a drug intended for hypertension and kidney disease. Novo Nordisk had acquired the drug in a deal valued at up to US$1.3 billion in late 2023, only to halt clinical trials less than a year later after the treatment was found to be ineffective. This prompted Novo Nordisk to announce a substantial impairment loss and initiated the legal proceedings, which are being arbitrated in New York.
Court’s Rationale for Upholding the Freezing Order
The court’s decision to uphold the freezing order was based on a thorough examination of the evidence, which Judge Philip Jeyaretnam concluded was sufficiently compelling to deny KBP’s application. The judge ruled that Novo Nordisk had a good arguable case, finding that the evidence established a strong possibility that both KBP and its founder, Huang Zhenhua, had misrepresented the drug’s efficacy. More importantly, the court determined that there was a “real risk” that KBP would place its assets beyond Novo Nordisk’s legal reach. This was evidenced by the transfer of US$339.1 million from KBP to its holding company and the payout of US$578.5 million in dividends, which the judge found indicated an intention to move assets in anticipation of a claim. The freezing order covers KBP’s Singapore-based assets, including a US$218 million fixed deposit account and a US$7 million property owned by Huang.
Background on KBP and its Founder, Huang Zhenhua
The company at the center of this legal dispute, KBP Biosciences, was established by Huang Zhenhua, a native of Shandong, China, who is now a Singaporean citizen. Described in the media as a “serial entrepreneur,” Huang has over two decades of experience in drug research and development. After earning his PhD from Shenyang Pharmaceutical University, he founded his first company, Xuanzhu Biopharm, in 2002 before selling it a decade later. Court documents show that Huang established KBP in 2011 and owns a 40% stake in the company. KBP, which is now incorporated in Singapore with its global headquarters in International Plaza on Anson Road, maintains operational footprints in both China and the US. This case highlights the high-stakes and complex nature of legal disputes within the global biotech industry, particularly when substantial assets and international jurisdictions are involved.
