Galera Therapeutics (OTC:GRTX), Inc. has reached a settlement in a lawsuit against two clinical research organizations (CROs) for a sum of $975,000, according to a recent SEC filing. The legal dispute, which centered on allegations of contract breach and negligence, was resolved with the payment and mutual releases, effectively terminating the existing contracts between the parties.
The lawsuit, filed on May 30, 2023, by the Malvern, PA-based pharmaceutical company, targeted Alira Health Clinical, LLC, and IQVIA Biotech, LLC. The complaint arose from an error in the statistical program for the Phase 3 ROMAN trial of avasopasem, which is designed to reduce severe oral mucositis induced by radiotherapy in patients with locally advanced head and neck cancer.
Galera accused the CROs of professional negligence and breach of contract, seeking damages for the alleged mishap that occurred in 2021. As part of the settlement, the involved CROs compensated Galera with the agreed amount, and both parties agreed to have no further obligations under their contracts.
The company, listed on the OTC Pink Market under the ticker GRTX, anticipates filing a Praecipe to Settle, Discontinue, and End the Litigation by today, according to the document signed by President and Chief Executive Officer J. Mel Sorensen, M.D.
The financial resolution of this legal matter concludes a significant challenge for Galera Therapeutics, which specializes in the development of pharmaceutical preparations. The settlement allows the company to move forward without the encumbrance of ongoing litigation.
The information disclosed is based on a statement from an SEC filing, ensuring a factual and unbiased report of the events.
InvestingPro Insights
As Galera Therapeutics, Inc. (GRTX) navigates the aftermath of its legal settlement, investors and stakeholders are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Galera Therapeutics holds a market capitalization of $6.01 million USD, indicating its size within the pharmaceutical industry. Despite the company's efforts to resolve its legal challenges, the stock has experienced significant volatility, with a price total return of -94.76% over the past year.
InvestingPro Tips reveal that analysts have recently revised their earnings expectations upwards for the upcoming period, suggesting a potential positive outlook for the company's financial performance. However, it's important to note that Galera operates with a significant debt burden and is quickly burning through cash, which could impact its long-term viability. With the stock price taking a considerable hit over the last week, month, and year, the company's valuation implies a poor free cash flow yield.
For those interested in a deeper analysis, InvestingPro offers additional tips on Galera Therapeutics. Currently, there are 14 more InvestingPro Tips available for GRTX at https://www.investing.com/pro/GRTX, which can provide investors with more comprehensive insights into the company's financial health and stock performance.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.