Hyperion Therapeutics and Clal Biotechnology Industries said they agreed to resolve their dispute after Hyperion halted development of a diabetes drug it bought from Clal due to manipulation of trial data. Hyperion had bought Israel's Andromeda Biotech - which is developing DiaPep277, a treatment for Type I diabetes that is undergoing a second advanced clinical study - from Clal for $12.5 million in June. The deal included milestone payments reaching $570 million.But in September, U.S.-based Hyperion stopped the drug's development after discovering Andromeda's employees were engaged in "serious misconduct" that involved manipulating the trial to obtain a favourable result.Israel's Clal subsequently sued Hyperion for $200 million in a U.S. court.On Tuesday, Hyperion said it would allow Clal to evaluate whether there is any clinical efficacy and whether there is a potential regulatory path for DiaPep277 that a party other than Hyperion may wish to pursue.
Hyperion Therapeutics, Inc. (Hyperion)is a development-stage biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat disorders in the areas of orphan diseases and hepatology. Shares of HPTX fell by 1.35% or $-0.34/share to $24.89. In the past year, the shares have traded as low as $18.97 and as high as $32.98. On average, 124709 shares of HPTX exchange hands on a given day and today's volume is recorded at 122177.
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