ROCKVILLE, Md., Aug. 4, 2008 (PRIME NEWSWIRE) -- Nabi Biopharmaceuticals (Nasdaq:NABI) announced today a settlement of an arbitration proceeding against Inhibitex, Inc., effective August 1, 2008. Under the terms of the settlement, Inhibitex agreed to pay Nabi a total of $2.2 million, $1.7 million in connection with the execution of settlement and $0.5 million by October 15, 2008 with 5% interest from August 1, 2008.
In 2006, Nabi recorded $4.5 million of other biopharmaceutical revenue for contract manufacturing, consisting of $1.2 million for product manufactured under a manufacturing agreement with Inhibitex., Inc and $3.3 million for penalties recorded in conjunction with the termination of the agreement. Inhibitex disputed the amounts due. Nabi arbitrated this dispute and, in early 2007, received a favorable ruling from the arbitrator awarding the full $4.5 million. Subsequently, Nabi moved to confirm the award in the Supreme Court of New York and Inhibitex moved to vacate the award. In late 2007, the court issued a decision denying Nabi's petition with respect to $3.3 million in cancellation fees, but affirmed the arbitrator's award in the amount of $1.2 million which was received in January 2008. Nabi filed an appeal in February 2008 with respect to the portion of the decision vacating the $3.3 million portion of the award. This settlement effectively terminates the appeal process.
"We are pleased to reach this settlement which will result in the payment to Nabi of most of the disputed amount and the end of future costs associated with our appeal," stated Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals.
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop products that target serious medical conditions in the areas of nicotine addiction and gram-positive bacterial infections. Nabi Biopharmaceuticals is currently developing NicVAX(r) (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for treatment of nicotine addiction and prevention of smoking relapse, and StaphVAX(r) (Staphylococcus aureus Polysaccharide Conjugate Vaccine), a vaccine designed to prevent the most dangerous and prevalent strains of S. aureus bacterial infections. The company is headquartered in Rockville, Maryland. For additional information about Nabi Biopharmaceuticals, please visit our Web site:http://www.nabi.com.
Forward-Looking Statements
Statements in this release that are not strictly historical are forward-looking statements including statements about the strategic alternatives process, development of our product candidates, and clinical trials and studies. You can identify these forward-looking statements because they involve our expectations, beliefs, projections, anticipations or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to, risks relating to our ability to: successfully pursue strategic and other alternatives; obtain successful clinical trial results; receive PhosLo milestone and royalty proceeds; successfully partner with third parties to fund, develop, and manufacture our pipeline products, including NicVAX and our gram-positive infections products; realize anticipated cost saving; attract and maintain the human and financial resources to bring to market products in development; depend upon third parties to manufacture our products; achieve approval and market acceptance of our products; enter into and maintain arrangements with third parties to market and sell our products; comply with reporting and payment obligations under government rebate and pricing programs; raise additional capital on acceptable terms, or at all; and re-pay our outstanding convertible senior notes when due. Many of these factors are more fully discussed, as are other factors, in the company's Annual Report on Form 10-K for the fiscal year ended December 29, 2007 and our Quarterly Report for the quarter ended March 29, 2008 on Form 10-Q that have been filed with the Securities and Exchange Commission.