Royalty Pharma and InNexus Biotechnology Inc, said it has purchased a second royalty interest from InNexus in an additional product targeting cancer based on InNexus' Dynamic Cross Linking (DXL) antibody enhancement technology.
Under the terms of the agreement, Royalty Pharma exercised its option to purchase a second royalty interest for $2.5 million. Royalty Pharma purchased a first royalty interest from InNexus for $2 million in April 2007 and made an additional at-market equity investment in InNexus in the amount of $1 million ($1.01/share). The total purchase price for the two royalty interests may be increased by up to an additional $30 million for the two products if certain conditions are fulfilled.
Pablo Legorreta, chief executive officer, Royalty Pharma stated, "We are very excited to be working with Morhet and purchasing our second royalty interest from InNexus. We are pleased that InNexus has launched its first product based on their DXL technology into preclinical development and look forward to their future products, achievements and successes."
Royalty Pharma is the industry leader in acquiring revenue-producing intellectual property principally royalty interests in marketed and late stage biopharmaceutical products with a market value of over $4.5 billion.
Jeff Morhet, chairman and chief executive officer, InNexus said, "Our partnership with Royalty Pharma has enabled us to launch into preclinical development our first product, DXL625, targeting lymphoma, which we are currently preparing for presentation to the Food & Drug Administration and filing an Investigational New Drug Application. We are also excited to be poised to launch our second preclinical candidate also targeting cancer that will be part of the Royalty Pharma agreement."
InNexus is a drug development company commercialising the next generation of monoclonal antibodies based on its Dynamic Cross Linking (DXL) technology, which improves the potency of existing antibody products while opening new markets and disease applications.