Pharmabiz
 

NPS Pharma gets US$ 38.4 mn for sale of Regpara royalty rights

Bedminster, New JerseyFriday, March 5, 2010, 08:00 Hrs  [IST]

NPS Pharmaceuticals, Inc announced the sale of its royalty rights from sales of Regpara (cinacalcet HCl) to a fund managed by DRI Capital, Inc., (Fund) for US$ 38.4 million. Royalties in excess of cumulative royalties of US$ 96 million or 2.5 times the upfront purchase price have been retained by NPS. "This transaction allows us to access significant capital in a manner that is non-dilutive to our shareholders," said Francois Nader, president and chief executive officer of NPS Pharmaceuticals. "The proceeds from this sale will support our two registration programs, teduglutide in short bowel syndrome and NPSP558 in hypoparathyroidism." NPS licensed cinacalcet HCl to Kyowa Kirin Pharma, a wholly-owned subsidiary of Kyowa Kirin Holdings, for the drug's development and commercial sale in China, Japan, North and South Korea, and Taiwan. Following review by the Pharmaceuticals and Medical Devices Agency (PMDA), Japan's Ministry of Health, Labour and Welfare (MHLW) approved the drug for the treatment of patients with secondary hyperparathyroidism during dialysis therapy. Kyowa Kirin began commercializing cinacalcet HCl in Japan as Regpata during the first quarter of 2008. Under the agreement, Fund is entitled to receive royalty payments related to net sales of Regpara occurring on or after July 1, 2009. NPS has received approximately US$ 3.5 million in cumulative royalty revenue on net sales of Regpara arising prior to July 1, 2009. NPS expects to report cash, cash equivalents and short- and long-term investments of approximately US$ 70 to US$ 75 million at December 31, 2009 versus US$ 106 million at December 31, 2008. NPS Pharmaceuticals is developing new treatment options for patients with rare gastrointestinal and endocrine disorders. The company is currently conducting two phase-3 registration programs. Teduglutide, a proprietary analog of endogenous GLP-2, is being evaluated as Gattex in a phase-3 registration study known as STEPS for intestinal failure associated with short bowel syndrome and in preclinical development for chemotherapy-induced gastrointestinal mucositis and other paediatric indications. NPSP558 (parathyroid hormone 1-84 [rDNA origin] injection) is being evaluated in a phase-3 registration study known as Replace as a hormone replacement therapy for hypoparathyroidism. NPS complements its proprietary programmes with a royalty-based portfolio of products and product candidates that includes agreements with Amgen, Kyowa Kirin, Nycomed, and Ortho-McNeil-Janssen Pharmaceuticals. DRI Capital is a privately held investment management company focused on the healthcare industry.

 
[Close]