EQS-News Relief Comments on Certain Statements Made by NeuroRx, Inc. in the Amended Form S-4 Filing of Big Rock Partners Acquisition Corp.
EQS Group-News: RELIEF THERAPEUTICS Holdings AG / Key word(s): Miscellaneous
Relief Comments on Certain Statements Made by NeuroRx, Inc. in the Amended Form S-4 Filing of Big Rock Partners Acquisition Corp.
NeuroRx has elected to make statements in the Amendment with respect to pending disputes between Relief and NeuroRx under the terms of the Collaboration Agreement. As a result, Relief has concluded that it must inform the public about the nature of the pending disputes and its views regarding the positions regarding these issues taken by its collaboration partner. The issues currently in dispute include the following:
- NeuroRx has refused to share clinical trial data from its recently completed Phase 2b/3 trial with Relief, which data are required to be provided to Relief under the Collaboration Agreement. Further, NeuroRx has refused to allow NeuroRx's contract partners dealing with issues relating to the development of aviptadil to share information with Relief that Relief requires to develop its aviptadil product in its territories (including the E.U. and the U.K.). As a result, Relief believes that NeuroRx is in default under the Collaboration Agreement, and that NeuroRx's failure to provide this data is impairing Relief's ability to develop and execute a clinical and regulatory strategy for its territories.
- NeuroRx states in the Amendment that Relief owes it approximately $4,000,000 in unpaid invoices. Unfortunately, many of these alleged expenses have not been substantiated by valid, verifiable invoices that support that these expenses are reimbursable under the Collaboration Agreement. Further, there are disputes between the parties over whether expenses exceeding the budget established in the Collaboration Agreement are reimbursable. With respect to this information, Relief has been seeking information from NeuroRx in order to establish what may be due to NeuroRx under the Collaboration Agreement, and, accordingly, Relief intends to exercise its rights under the Collaboration Agreement to conduct a forensic audit of NeuroRx's books and records in order to determine the accuracy of the expense information that has been provided.
- NeuroRx has alleged in the Amendment that Relief has elected not to fund the recently initiated clinical trial evaluating inhaled aviptadil for the treatment of patients with moderate to severe COVID-19. In fact, Relief has requested certain information required for it to determine whether or not to fund this trial, and NeuroRx has refused to provide the requested information that is needed by Relief to make a decision on whether or not to fund this trial. It is Relief's position that until it is provided with sufficient information to make this decision, NeuroRx cannot bring in another source to specifically fund this trial.
- NeuroRx has stated in the Amendment that Relief's failure to fund expenses may result in a dispute with Relief over whether Relief's share of the net profits from sales of aviptadil in NeuroRx's territory should be less than that set forth in the Collaboration Agreement. Relief believes that the net profit splits between Relief and NeuroRx that are set forth in the Collaboration Agreement are not affected by any of these funding issues (including the recent warrant exercise reported in the Amendment by GEM Yield Bahamas Limited, a significant stockholder of Relief).
- NeuroRx makes allegations in the Amendment that raise questions about the formulation of aviptadil that Relief has contributed to the parties' collaboration. Relief notes that while there are stability issues with the formulation that Relief brought to the collaboration, all of these problems were understood by all parties at the time of the execution of the Collaboration Agreement and that efforts to resolve those issues were contemplated by the Collaboration Agreement. In all respects, Relief believes that the version of aviptadil which is in evaluation in NeuroRx's clinical trials is, in all respects, the drug product covered by the Collaboration Agreement.
Relief intends to continue its efforts to resolve amicably the pending disputes with NeuroRx over the Collaboration Agreement. However, if such disputes are not resolved amicably, Relief intends to take all necessary actions to enforce its rights under the Collaboration Agreement. While there can be no assurance, Relief believes that it will prevail in any such actions to enforce its rights under the Collaboration Agreement.