"A fierce dispute between an American venture capital firm and the family investment office of a Russian billionaire has trickled down into the Bay Area. In December and January, four local biotech companies with stakes in the battle each filed for bankruptcy. The argument pits New York's Apple Tree Partners, a biotech-focused venture investor, against Rigmora, an investment entity owned by the family office of Dmitry Rybolovlev, who made his billions in the Russian fertilizer industry."
"In the cash-intensive world of pharmaceutical research, Apple Tree's portfolio companies have benefited enormously from their deep-pocketed Russian backer. But now the relationship is unraveled; last year, Apple Tree and Rigmora launched legal suits against each other and began throwing barbs in the press. Cash for the biotech startups dried up, and Apple Tree's CEO said in court that the companies cut 70% of their total workers."
"Apple Tree mostly won its case, with a Delaware judge ordering Rigmora in December to cough up $97 million to give to the biotech companies.Rigmora's case, filed in the Cayman Islands, aims to push Apple Tree out of the picture by liquidating the partnership and giving Rigmora full control over their venture. Rigmora accused its longtime partner of "a serious lack of probity" in the petition and wrote that it's "irretrievably lost all trust and confidence" in Apple Tree's management of the partnership."
A funding dispute between Apple Tree Partners and Rigmora, the investment arm of Dmitry Rybolovlev's family office, severed a long-standing financial relationship that supplied more than $2.3 billion over 13 years to biotech startups. The startups focused on cancer, blindness, opioid addiction, obesity and other medical challenges. Legal suits began last year, freezing cash and forcing deep staff cuts; Apple Tree's CEO reported a 70% workforce reduction. A Delaware judge ordered Rigmora to pay $97 million to the companies, while Rigmora has filed in the Cayman Islands seeking liquidation and full control, alleging a loss of probity and trust.
Read at SFGATE
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