Shares of Biofrontera, a dermatology-focused biopharmaceutical company, saw a boost after announcing a resolution to an ongoing dispute with pharmaceutical company Maruho. In a securities filing released on Wednesday, Biofrontera disclosed that it had entered into a confidential settlement agreement and share transfer agreement with Maruho.
The dispute between the two companies stemmed from a 2019 deal, wherein Biofrontera sought to avoid repaying $7.3 million in startup costs to Maruho. Biofrontera initiated arbitration proceedings against Maruho in the International Chamber of Commerce, seeking a declaration that it was not obligated to repay the funds.
Under the terms of the settlement, Biofrontera will be relieved of its obligations to repay the $7.3 million and any profit-sharing payments associated with products acquired under the 2019 agreement. In return, Biofrontera will transfer over 5.4 million shares of its stock to Maruho.
This development has had a positive impact on Biofrontera’s shares, with an increase of 5.5% in early trading, reaching $2.85. It is worth noting that the stock was trading at over $17 per share just a year ago.
This resolution marks an important milestone for both companies, putting an end to the dispute and allowing them to move forward without any remaining obligations or outstanding issues.