Clal Biotechnology Industries Ltd. (TASE: CBI) is writing off NIS 506 million following the cancellation of the sale of Andromeda Biotech to US company Hyperion Therapeutics, the company notified the Tel Aviv Stock Exchange (TASE) this morning.
Clal Biotechnology reported that Hyperion has decided to halt development of DiaPep277 for the treatment of juvenile diabetes, the drug that Hyperion was supposed to purchase. Hyperion accused Andromeda employees of falsifying the drug's trial results and consequently cancelled the deal.
Clal Biotechnology said, "In these circumstances, in order to be cautious and conservative, the company estimates that the milestones that were set in the agreement between the company and Hyperion will not be met and as a result the company will not receive the remuneration decided upon as part of the Hyperion agreement."
The company stresses that the report is in no way an admission of Hyperion's claims about falsifying the trial results. "The company is examining the full significance of Hyperion's announcement and the manner of its conduct. There is nothing in this report that can be deduced from any of the claims facing the company regarding Hyperion's announcement and the manner of its conduct."
Yesterday, a market source told "Globes," "I don't believe that people at Clal Biotech, managed by Ruben Krupik, are capable of consciously living with the knowledge that the results were falsified."
Published by Globes [online], Israel business news - www.globes-online.com - on September 11, 2014
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