- The stock price of Forward Pharma A/S (NASDAQ: FWP) fell by over 20% pre-market. This is why it happened.
The stock price of Forward Pharma A/S (NASDAQ: FWP) fell by over 20% pre-market. Investors are responding negatively to Forward Pharma announcing that the Technical Board of Appeal (TBA) of the European Patent Office (EPO) has dismissed Forward’s appeal of the previous decision of the EPO Opposition Division to revoke the EP2801355 patent (355 patent) following the oral hearing.
The TBA had made its decision after considering Forward’s appeal against the decision of the Opposition Division and third-party submissions from several opponents. And the TBA will issue detailed reasons for the decision in written form in due course and following receipt and review of these, Forward will announce future plans for the company.
Such plan may involve a petition for review at the Enlarged Board of Appeal of the EPO in an effort to overturn the unfavorable outcome, but the chances of a petition for review being successful is low. And the denial of a petition for review would end the Opposition Proceeding in favor of the opponents.
For all practical purposes, such denial or the absence of a petition for review would represent an unsuccessful outcome of the Opposition Proceeding, resulting in no royalties being due to Forward Pharma from Biogen based on Biogen’s future net sales outside the United States, as defined in the Settlement and License Agreement by and among Forward, subsidiaries of Biogen, and certain other parties thereto.
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