Swiss pharma firm Relief, U.S. partner fight after hopes dented for COVID-19 drug (updated)

MindMaze Therapeutics Holding SA

19/04/2021 14:41

(Adds detail about updated trial results, share performance)
    ZURICH, April 19 (Reuters) - A Swiss company whose market
capitalization rose at one time to more than 1.5 billion Swiss
francs ($1.6 billion) on hopes an old drug it owned would
succeed against COVID-19 is embroiled in a dispute with U.S.
partner NeuroRx, it said in a statement.
    Relief Therapeutics'  RLFB.S  market cap has fallen about
70% from a high in the third quarter of 2020, as the company's
aviptadil, a 50-year-old medicine, failed to win U.S. emergency
approval and in February demonstrated no survival benefit at 28
days in a U.S. clinical trial of people with COVID-19
respiratory failure.  urn:newsml:reuters.com:*:nL8N2KF55L  urn:newsml:reuters.com:*:nL1N2JA0GN
    The two companies said in March that 60-day results showed
the drug helped patients, after adjusting for how they were
ventilated and where they were treated, and announced plans to
again pursue U.S. emergency approval.  urn:newsml:reuters.com:*:nFWN2LR13R
    Relief said on Monday that NeuroRx and it are fighting over
issues including sharing of trial data, invoices totaling about
$4 million that NeuroRx contends Relief must pay, funding for
clinical trials, the allocation of potential profits, and other
issues.
    "Relief intends to continue its efforts to resolve amicably
the pending disputes with NeuroRx over the Collaboration
Agreement," Relief said in a statement. "However, if such
disputes are not resolved amicably, Relief intends to take all
necessary actions to enforce its rights under the Collaboration
Agreement."
    The shares, which are volatile, fell 18.2% by 1320 GMT.
    Separately, a Securities and Exchange Commission filing on
Friday by a special acquisition corporation that in December
announced a merger with NeuroRx contends Relief had "reimbursed
NeuroRx for approximately $10.6 million of expenses, but has not
paid approximately $4 million in invoiced costs associated" with
the aviptadil clinical trial.
    "These circumstances may lead to a dispute with Relief
Therapeutics regarding what share of profits Relief Therapeutics
should be entitled to receive," according to the SEC filing by
Big Rock Partners Acquisition Corp.  BRPAU.O 
    ($1 = 0.9206 Swiss francs)

 (Editing by Simon Cameron-Moore and Michael Shields)
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