Dyax Corp has sold its rights to royalties and other payments related to the commercialization of Xyntha by Pfizer, Inc, a licensee under the company's phage display Licensing and Funded Research Programme (LFRP), to an investment fund managed by Paul Capital Healthcare. Under the terms of this sale, Dyax received an upfront cash payment of US$ 10 million and will be eligible to receive milestone payments totalling up to US$ 2 million based on Xyntha sales in 2010 and 2011. A portion of the upfront cash payment was applied to Dyax's debt obligations under the LFRP and, net of this and other required payments, Dyax received approximately US$ 6.8 million, exclusive of potential future milestone payments.
Xyntha, marketed as ReFacto AF in Europe, (Antihemophilic Factor (Recombinant), Plasma/Albumin-Free) is a recombinant factor VIII product for patients with hemophilia A for both the control and prevention of bleeding episodes and surgical prophylaxis. The peptide ligand, used in the purification process during the manufacture of Xyntha, was discovered by Dyax using its proprietary phage display libraries. Xyntha is distinguished as the only recombinant factor VIII treatment to utilize an entirely synthetic purification process.
"The sale of this royalty stream highlights the increasing value potential of our LFRP," stated Gustav A Christensen, president and chief executive officer of Dyax. "Behind this product, there is an extensive licensee pipeline of clinical-stage compounds that, as they mature and become commercialized, have the potential to bring in regular and substantial revenue to Dyax."
"The projected value of Dyax's Xyntha royalties have continued to increase significantly over time and we are pleased to provide non-dilutive capital to Dyax as an important contribution to creating value for them," said Lionel Leventhal, partner at Paul Capital Healthcare.
The LFRP provides access to the Dyax's phage display libraries in various types of licenses and collaborations. Dyax maintains more than 70 ongoing license agreements with various research, biotechnology and pharmaceutical companies under the LFRP. To date, licensees have advanced 17 product candidates into clinical development and one product (Xyntha) has received market approval.
Dyax's proprietary drug discovery platform, phage display, provides an efficient means to identify compounds that interact with a wide array of therapeutic targets.
Dyax is a fully integrated biopharmaceutical company focused on discovering, developing and commercializing novel biotherapeutics for unmet medical needs.
Through its funds, Paul Capital Healthcare is one of the largest dedicated healthcare investors globally, with more than US$ 1.6 billion in equity capital commitments and debt facilities under management.