Yeilding opposite results than expexted, Capricor Therapeutics (NASDAQ: CAPR) shares stock tumbles after suing NS Pharma

Capricor Therapeutics (NASDAQ: CAPR) shares fell 13% after the company filed a lawsuit against Nippon Shinyaku Co., Ltd. and its U.S. subsidiary NS Pharma Inc. over their distribution agreement for Deramiocel, an investigational cell therapy for Duchenne muscular dystrophy. Nippon Shinyaku shares dropped as much as 15%.

The biotechnology company claims NS Pharma failed to adequately prepare for the commercial launch of Deramiocel and that a pricing mechanism in their agreement would prevent patients covered by Medicare, Medicaid, or private insurance from accessing the therapy. Capricor seeks to rescind the distribution agreement.

Duchenne muscular dystrophy affects approximately 15,000 people in the United States, primarily boys and young men. The genetic disorder is progressive and fatal.

Capricor filed a motion for preliminary injunction seeking to preserve its ability to distribute Deramiocel to patients pending FDA approval. The Food and Drug Administration granted Deramiocel Priority Review with a target PDUFA action date of August 22, 2026.