Brickell, Bodor settlement talks falter

BOULDER and MIAMI — Efforts to settle an intellectual-property dispute between Boulder’s Brickell Biotech Inc. (Nasdaq: BBI) and Miami-based Bodor Laboratories Inc. failed this week, triggering arbitration.

Brickell said mediation talks between the two companies has “proven unsuccessful” and are proceeding toward a binding arbitration process, according to disclosures made to the U.S. Securities and Exchange Commission Monday.

Bodor sued Brickell in late October, alleging a series of intellectual-property violations for an anti-excessive-sweating treatment. Brickell has long said Bodor’s claims are without merit.

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The suit was later stayed when Brickell triggered an arbitration clause in the agreement.

The litigation caused NovaQuest Co-Investment Fund X LP, a North Carolina venture fund, to cancel its $25 million milestone payment agreement to Brickell and forced the Boulder company to pay back $5.6 million and interest.

Brickell said in previous quarterly filings that the loss of funding and the lawsuit could slow down its Phase III trial for its flagship anti-sweating candidate.

Brickell made the announcement after the close of trading Monday. Its stock price rose 2 cents over the period to close at $1.46 per share.