Xbrane Biopharma AB (Xbrane) (STO:XBRANE), a commercial phase Swedish biopharmaceutical company, reported on Friday that it has been notified, via its subsidiary Primm Pharma srl, that Finchimica S.p.A, parent company of International Chemical Industry S.p.A. (ICI), has been declared bankrupt by the Court of Milan and has entered into the relevant insolvency proceeding.

ICI is Primm Pharma's contract manufacturer for its pre-clinical product candidate Spherotide.

According to the company, Primm Pharma is closely monitoring the process and will take adequate and appropriate actions to secure its interests in future production of Spherotide by ICI.

This contract manufacturing agreement for Spherotide was entered into by Primm Pharma with Finchimica as counterpart. A process for the protection of Primm Pharma's production and interests has been initiated.

Xbrane clarified that its core business, which is the development of a number of biosimilars, is not affected at all by this event.