Friday, July 17, 2009

Court dismisses lawsuit against Pro-Pharmaceuticals

By Mass High Tech staff

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Suffolk County Superior Court has granted a motion by Pro-Pharmaceuticals Inc. to dismiss a lawsuit filed by Prospect Therapeutics Inc. against the Newton pharmaceutical firm and its former CEO David Platt.

The lawsuit, according to a Pro-Pharmaceuticals statement, was inherited by Prospect Therapeutics Inc. following its purchase of assets from the bankruptcy of GlycoGenesys Inc. Prospect reportedly pursued the lawsuit and, prior to the court reaching a verdict, Prospect announced its plans to liquidate. The new owner of Prospect’s assets, including the lawsuit, elected not to pursue the suit, resulting with the Court ruling to dismiss the motion, Pro-Pharmaceuticals officials reported.

Pro-Pharmaceuticals (OTCBB: PRWP) develops Davanat, a drug treatment for cancer. The company release purports that Prospect Therapeutics pursued the lawsuit because it saw value in Pro-Pharmaceuticals intellectual property surrounding Davanat.

Pro-Pharmaceuticals is a clinical and development stage pharmaceutical firm that discovers and develops carbohydrate-based compounds for the treatment of cancer, liver, microbial and inflammatory diseases.

Earlier this month, the company landed $500,000 of a $6 million round financed by 10X Fund LP.