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Novo Nordisk has scored a major legal victory in its high-stakes $830 million fraud case, securing a worldwide asset freeze against KBP Biosciences as it prepares for arbitration over the allegedly deceptive sale of the hypertension drug ocedurenone.

Judge Philip Jeyaretnam of the Singapore International Commercial Court issued the injunction Friday, citing “a good arguable case” that KBP knowingly misled Novo about the drug’s safety and efficacy in the lead-up to the $1.3 billion deal.

Allegations of Concealed Data and Misrepresentation

In his ruling, Judge Jeyaretnam found that KBP had promised to provide “true, complete, and accurate” information under the asset purchase agreement. However, Novo alleges KBP withheld interim analyses of Phase 2 clinical trials that exposed ocedurenone’s inefficacy, along with details about testing irregularities at a key trial site that reported anomalous positive results.

“The evidence here points to a seller who knowingly misrepresented the value of its assets while anticipating a claim from the buyer,” the judge wrote.

Adding to the suspicion, Novo flagged nearly $340 million in transactions from KBP to its holding company around the time of the deal, raising concerns that the Chinese pharmaceutical firm was moving assets beyond Novo’s reach.

Arbitration Looms as Novo Seeks Compensation

The dispute now moves to arbitration in New York, administered by the International Chamber of Commerce. Meanwhile, the Singapore court’s Mareva injunction—an emergency asset freeze—prevents KBP and its founder, Huang Zhenhua, from shifting assets out of Singapore.

Novo’s troubles with ocedurenone surfaced last June, when the Danish pharmaceutical giant informed investors that a Phase 3 trial had failed to meet expectations. The setback forced Novo to halt development, leading to an impairment loss of nearly $800 million.

Judge Jeyaretnam emphasized the urgency of Novo’s request, stating that the risk of KBP dissipating its assets justified the order being granted without prior notice to the defendants.

Novo: Patient Safety is the Priority

A Novo spokesperson defended the company's aggressive legal approach, stating, “Patient safety remains our number one priority in every aspect of our business, including ensuring we receive all material information related to clinical trials.”

KBP representatives could not be reached for comment outside business hours in Singapore.

Novo Nordisk is represented by Setia Law LLC’s Danny Ong, Jason Teo, and Elvis Zhang. Counsel for KBP Biosciences was not available.