Benzinga | Jan 13, 2022 11:45AM EST

NRx Pharma Files Counterclaim Against Relief Therapeutics Over COVID-19 Candidate Rights

NRx Pharmaceuticals Inc (NASDAQ:NRXP) has filed a counterclaim against its former partner, Relief Therapeutics Holdings (OTC:RLFTF), in an ongoing dispute over the COVID-19 treatment Zyesami (avaptadil).

* NRx alleges that Relief has breached a collaboration agreement and falsely asserted worldwide right to Zyesami.

* In addition, NRx alleges that Relief board Chairman Raghuram Selvaraju and management have engaged in a "past pattern of collusion...that have led to criminal investigations, sanctions, fines, and in one case incarceration."

* The company recently submitted data for Zyesami (Aviptadil) after failing to recover on remdesivir have a 3-fold increased odds of recovery from the ICU.

* NRx is seeking $185 million in reliance and punitive damages for "libelous and extortionate behavior."

* NRx said Relief has continued to mislead the public and shareholders by claiming ownership over NRx's expanded access programs, participation in the NIH trials, and development of commercial-scale manufacturing and distribution programs.

* NRx claims all were undertaken solely by the company, and Relief refused to fund and participate.

* "We are similarly horrified that Relief's management attempted to coerce NRx into using Relief's patented formulation of aviptadil in critically-ill patients despite Relief's knowledge that the formulation was ineffective," said NRx.

* Price Action: NRXP shares are up 0.42% at $4.77 during the premarket session on the last check Thursday.