Nabi Biopharmaceuticals (NABI) Announces Withdrawal of Biotest's Indemnification Claim
Nabi Biopharmaceuticals (Nasdaq: NABI) announced that Biotest Pharmaceuticals Corporation has withdrawn and released a claim representing $50.4 million of the original $56 million indemnification claims made on March 31, 2009 against Nabi, and together with Nabi has instructed the escrow agent to release $4.5 million of the funds held in escrow to support indemnification claims. The withdrawn claim related to a contract assigned to Biotest when it purchased our biologics business unit in 2007.
The remaining indemnification claim made by Biotest in March relates to local permits for construction of our manufacturing facility in Boca Raton, which was transferred to Biotest as part of the biologics business sale. This claim, for which Biotest estimated its losses at approximately $5.7 million, remains outstanding. We believe that Biotest's estimated losses based on the permit-related claim are speculative and appear to be based on claimed delays that have yet to occur. We continue to deny any liability with respect to this claim and will vigorously contest and defend against this claim and seek release of the remaining $5.7 million of escrowed funds. Based on the information we have received to date from Biotest and after consultation with our outside legal counsel, we believe that Biotest's permit-related claim is unsubstantiated.
Nabi Biopharmaceuticals, a biopharmaceutical company, develops products that address unmet medical needs in the areas of nicotine addiction and infectious disease in the United States.[SM]
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