Supernus to Receive $30 Million in Non-Dilutive Royalty Deal
July 08 2014 - 7:30AM
Supernus Pharmaceuticals, Inc. (Nasdaq:SUPN), today announced the
execution of a royalty acquisition agreement ("Agreement") with
HealthCare Royalty Partners ("HC Royalty"). Per the Agreement, HC
Royalty will make a $30 million cash payment to Supernus in
consideration for acquiring from Supernus certain royalty and
milestone rights related to the commercialization of Orenitram™
(treprostinil) Extended-Release Tablets by Supernus' partner United
Therapeutics Corporation. Supernus will retain full ownership of
the Royalty Rights after a certain threshold has been reached per
the terms of the Agreement.
"We are pleased to have completed this royalty transaction,
which strengthens our balance sheet and enhances our financial
flexibility," said Jack Khattar, President and Chief Executive
Officer of Supernus. "The transaction allows us to partially
monetize our royalty stream from Orenitram™ for a significant cash
consideration while positioning Supernus to further benefit from
the future upside potential of the product."
Orenitram is indicated for the treatment of pulmonary arterial
hypertension (PAH) in WHO Group I patients to improve exercise
capacity. The product was recently launched by United Therapeutics
Corporation (Nasdaq:UTHR) in the United States market. Supernus
developed the extended release formulation of Orenitram under a
Development and License Agreement with United Therapeutics using
its EnSoTrol, novel osmotic technology platform. Per the license
agreement between Supernus and United Therapeutics, Supernus is
entitled to certain milestone fees and royalties ("Royalty Rights")
associated with the commercialization of the product worldwide.
"As a result of this royalty transaction, our cash position has
been significantly strengthened giving us additional operational
flexibility and expanding our capacity for potential business
development activities," added Jack A. Khattar.
"Orenitram is a meaningful advance in the treatment of pulmonary
arterial hypertension, as the first FDA approved orally
administered prostacyclin therapy," commented Todd C. Davis,
Founding Managing Director at HC Royalty. "We were pleased to
structure a deal for Supernus that would enable them to financially
benefit from the future success of Orenitram."
For full patient information and full prescribing information,
visit:
http://www.orenitram.com/dtc/pdf/Orenitram_Full_Prescribing_Information.pdf
Orenitram™ is a trademark of United Therapeutics
Corporation.
About Supernus Pharmaceuticals, Inc.
Supernus Pharmaceuticals, Inc. is a specialty pharmaceutical
company focused on developing and commercializing products for the
treatment of central nervous system, or CNS, diseases. The Company
has two marketed products for epilepsy, Oxtellar XR®
(extended-release oxcarbazepine) and Trokendi XR® (extended-release
topiramate). The Company is also developing several product
candidates in psychiatry to address large market opportunities in
ADHD, including ADHD patients with impulsive aggression. These
product candidates include SPN-810 for impulsive aggression in ADHD
and SPN-812 for ADHD.
About HealthCare Royalty Partners
HealthCare Royalty Partners is a global healthcare investment
firm focused on providing financing solutions to healthcare
companies and royalty owners with interests in approved
pharmaceutical and medical device products. The firm's senior
investment team has participated in over 50 royalty financings
valued at over $2 billion over the past decade. For more
information, visit www.healthcareroyalty.com.
Forward-Looking Statements
This press release contains forward-looking statements regarding
the potential net sales of Orenitram™ and United Therapeutics'
willingness and ability to pay future royalties and milestone
payments as they become due under the License Agreement with
Supernus, or the significance of such payments. Actual results may
differ materially from those in these forward-looking statements as
a result of various factors, including, but not limited to, risks
regarding United Therapeutics Corporation's ability to
commercialize the product successfully, whether physicians will
prescribe and patients will use the product, and competition in the
market. For a further description of these and other risks facing
the Company, please see the risk factors described in the Company's
Annual Report Form 10-K that was filed with the United States
Securities and Exchange Commission on March 21, 2014 under the
caption "Risk Factors." Forward-looking statements speak only as of
the date of this press release, and the company undertakes no
obligation to update or revise these statements, except as may be
required by law.
CONTACT: Jack A. Khattar, President and CEO
Gregory S. Patrick, Vice President and CFO
Supernus Pharmaceuticals, Inc.
Tel: (301) 838-2591
Or
INVESTOR CONTACT:
COCKRELL GROUP
877.889.1972
investorrelations@thecockrellgroup.com
cockrellgroup.com
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