INCLINE VILLAGE, Nev.,
July 29, 2015 /PRNewswire/
-- PDL BioPharma, Inc. (NASDAQ: PDLI) today announced that it
has entered into a revenue interest assignment agreement (the
"Agreement") in which it has agreed to provide ARIAD
Pharmaceuticals, Inc. (NASDAQ: ARIA) with up to $200 million in revenue interest financing in
exchange for royalties on the net revenues of Iclusig®
(ponatinib). Funding of the first $100
million will be made in two tranches of $50 million each, with the initial amount having
already been funded on the closing date of the agreement and an
additional $50 million to be funded
on the 12-month anniversary of the closing date. In addition,
ARIAD has an option to draw up to an additional $100 million at any time between the sixth and
twelfth month anniversaries of the closing date.
PDL will initially receive 2.5% of the worldwide net revenues of
Iclusig until the one year anniversary of the closing date, at
which time the royalty increases to 5.0% of the worldwide net
revenues of Iclusig and remains until December 31, 2018. Beginning January 1, 2019 and thereafter, the royalty rate
will increase to 6.5%, subject to an additional increase to 7.5% if
PDL's funding exceeds $150
million. If PDL does not receive payments equal to or
greater than the total amount funded on or before the fifth
anniversary of each of the respective fundings, ARIAD will pay PDL
the difference between the amounts funded by PDL and the amounts
paid to such date. PDL has a put option based upon certain
events and ARIAD has a call option to repurchase the revenue
interest at any time. Both the put and call prices have been
pre-determined.
"We are extremely pleased to be able to structure a flexible,
customized financial agreement that provides ARIAD with capital to
support its key products," stated John P.
McLaughlin, president and chief executive officer of PDL
BioPharma.
"We are pleased to collaborate with PDL as we begin the next
phase of our company's growth with the initiation of a front-line
trial of brigatinib and plans for its commercialization, along with
continued commercialization of Iclusig," said Dr. Harvey J. Berger, M.D., chairman and chief
executive officer of ARIAD. "Furthermore, this agreement provides
ARIAD with the flexibility needed for future financing and business
development activity."
About Iclusig® (ponatinib)
Iclusig is approved in the U.S., EU, Australia, Israel, Canada and Switzerland.
In the U.S., Iclusig is a kinase inhibitor indicated for
the:
- Treatment of adult patients with T315I-positive chronic myeloid
leukemia (chronic phase, accelerated phase, or blast phase) or
T315I-positive Philadelphia
chromosome positive acutelymphoblastic leukemia (Ph+ ALL).
- Treatment of adult patients with chronic phase, accelerated
phase, or blast phase chronic myeloid leukemia or Ph+ ALL for whom
no other tyrosine kinase inhibitor (TKI) therapy is indicated.
These indications are based upon response rate. There are no
trials verifying an improvement in disease-related symptoms or
increased survival with Iclusig.
About ARIAD
ARIAD Pharmaceuticals, Inc., headquartered in Cambridge, Massachusetts and Lausanne, Switzerland, is an integrated global oncology
company focused on transforming the lives of cancer patients with
breakthrough medicines. ARIAD is working on new medicines to
advance the treatment of various forms of chronic and acute
leukemia, lung cancer and other difficult-to-treat cancers. ARIAD
utilizes computational and structural approaches to design
small-molecule drugs that overcome resistance to existing cancer
medicines. For additional information, visit
http://www.ARIAD.com or follow ARIAD on Twitter
(@ARIADPharm).
Iclusig® is a registered trademark of ARIAD
Pharmaceuticals, Inc.
About PDL BioPharma, Inc.
PDL manages a portfolio of patents and royalty assets,
consisting of its Queen et al. patents, license agreements with
various biotechnology and pharmaceutical companies, and royalty and
other assets acquired. To acquire new income generating assets, PDL
provides non-dilutive growth capital and financing solutions to
late-stage public and private healthcare companies and offers
immediate financial monetization of royalty streams to companies,
academic institutions, and inventors. PDL has invested
approximately $830 million to date.
PDL evaluates its investments based on the quality of the income
generating assets and potential returns on investment. PDL is
currently focused on intellectual property asset management,
acquiring new income generating assets and maximizing value for its
shareholders.
PDL was founded in 1986 and is headquartered in Incline Village, Nevada.
For more information, please visit www.pdl.com.
PDL BioPharma and the PDL BioPharma logo are considered
trademarks of PDL BioPharma, Inc.
Forward-looking Statements
This Press Release contains
"forward-looking" statements as defined in the Private Securities
Litigation Reform Act of 1995. These statements are based on
management's current expectations or predictions of future
conditions, events or results based on various assumptions and
management's estimates of trends and economic factors in the
markets in which we are active, as well as our business plans.
Words such as "expects," "anticipates," "intends," "plans,"
"believes," "seeks," "estimates," "projects," "forecasts," "may,"
"should," variations of such words and similar expressions are
intended to identify such forward-looking statements. The
forward-looking statements may include, without limitation,
statements regarding forecasted revenues in respect of product
development, product potential or financial or operational
performance. The forward-looking statements are subject to risks
and uncertainties, which may cause results to differ materially
from those set forth in the statements. Forward-looking statements
in this release should be evaluated together with the many
uncertainties that affect the business of each of PDL and ARIAD and
their markets, particularly those discussed in the risk factors and
cautionary statements in filings made by PDL and ARIAD with the
Securities and Exchange Commission. Forward-looking statements are
not guarantees of future performance, and actual results may differ
materially from those projected. The forward-looking statements are
representative only as of the date they are made, and neither PDL
nor ARIAD assumes any responsibility to update any forward-looking
statements, whether as a result of new information, future events
or otherwise.
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SOURCE PDL BioPharma, Inc.