Allarity settles $4.9 million Novartis liability, signs first CLIA lab services deal
The two disclosures, filed together in an 8-K dated October 28, 2026, cover a reduced settlement payment to Novartis and Allarity's first commercial contract under its new laboratory services strategy.
Allarity Therapeutics disclosed in a Form 8-K dated October 28, 2026 that it had entered into a Settlement and Release Agreement with Novartis Pharma AG relating to an aggregate current liability of $4,900,000, plus interest, due to Novartis.1 That liability arose under a license agreement between Novartis and Allarity Therapeutics Europe ApS, an affiliate of the Company, which license agreement was previously terminated effective January 26, 2024.1
Under the settlement, Novartis agreed to accept a payment of $1,000,000 from the Company as full payment of the Liability.1 Once that payment is received, Novartis and its related parties will release the Company and its related parties from claims in respect of the Liability, and the Company and its related parties will release Novartis and its related parties from claims, subject in each case to claims relating to or arising from the enforcement of the Settlement Agreement.1
Separately, in a press release dated October 30, 2026 included as an exhibit to the same filing, Allarity announced its first revenue-generating contract under its newly established CLIA-certified laboratory services strategy.1 The company said the agreement represents the first commercial validation of Allarity's CLIA-certified laboratory services strategy following the Company's receipt of CLIA certification in July 2026.1
Under the deal, Allarity will provide a European biotechnology company with development, validation and related laboratory services to support implementation of a proprietary precision oncology predictive device for use in the United States.1 The company noted successful completion of the program could lead to ongoing commercial testing and CLIA-related service revenues.1
Allarity's CEO, Thomas Jensen, said in the release that for shareholders, the opportunity is to generate additional value from capabilities the company has already built while maintaining stenoparib as its top development priority.1 The company reiterated that its existing working capital is expected to be sufficient to fund operations into the summer of 2028.1
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