Adamas Signs $100 Million Royalty-Backed Note Agreement with HealthCare Royalty Partners
May 11 2017 - 9:12AM
Adamas Pharmaceuticals, Inc. (Nasdaq:ADMS) today announced that it
has entered into a $100 million royalty-backed note agreement with
HealthCare Royalty Partners (HCR).
Under the terms of the transaction, Adamas will
receive $35 million at closing and an additional $65 million upon
U.S. Food and Drug Administration (FDA) approval and receipt of
Orphan Drug exclusivity of ADS-5102 (amantadine) extended-release
capsules for the treatment of levodopa-induced dyskinesia in people
with Parkinson’s disease. Adamas will use the proceeds from the
royalty-backed note agreement for general corporate purposes,
including the commercialization of ADS-5102 for the treatment of
levodopa-induced dyskinesia in people with Parkinson’s disease in
the United States, for which a New Drug Application (NDA) is
currently under review by the FDA with a Prescription Drug User Fee
Act (PDUFA) date of August 24, 2017. The proceeds will also be used
to advance the company’s ongoing clinical development programs.
“We are thrilled to partner with HCR in this
transaction, providing us with the resources to advance our
business and commercialize ADS-5102, which we believe will create
significant and sustainable value for all Adamas stakeholders.”
said Gregory T. Went, Ph.D., Chairman and Chief Executive Officer
of Adamas Pharmaceuticals, Inc. “We look forward to bringing
ADS-5102 to patients, which, if approved, will be the first and
only FDA-approved medicine for the treatment of dyskinesia in
people with Parkinson’s disease, a debilitating consequence of
levodopa therapy.”
“We are very excited to partner with Adamas as
the company commercializes ADS-5102,” said Clarke Futch, Managing
Partner and Chairman of HCR’s investment committee. “ADS-5102 has
the potential to be the first medication successfully developed to
benefit Parkinson’s patients with levodopa-induced dyskinesia.”
Terms of the agreement with HCR include:
- Adamas will pay 11 percent fixed interest on outstanding
principal on a quarterly basis, and interest and principal will be
payable from the proceeds of a 12.5 percent royalty on U.S. net
sales of ADS-5102 and up to $15 million annually of Adamas’
royalties from Allergan on U.S. net sales of
NAMZARIC® starting in May 2020.
- Adamas may prepay 200 percent of the principal funded by HCR,
at which time no further payment obligations will apply.
- The royalty rate on net sales of ADS-5102 will drop to 6.25
percent after the principal amount of the note has been fully
repaid, until Adamas has made total payments of 200 percent of the
principal funded by HCR, and may increase up to 22.5 percent of
U.S. net sales and other consideration received outside of the U.S.
if total interest and principal payments have not reached minimum
specified levels.
- The HCR notes mature in December 2026, if not earlier
prepaid.
About HealthCare Royalty
PartnersHCR is a private investment firm that purchases
royalties and uses debt-like structures to invest in commercial or
near-commercial stage life science assets. HCR has $3.5 billion in
cumulative capital commitments with offices in Stamford (CT), San
Francisco and Boston. Since 2003, HCR's senior professionals have
completed more than 60 healthcare investments. For more
information, visit www.healthcareroyalty.com.
About Adamas Pharmaceuticals,
Inc.Adamas develops new medicines to improve the daily
lives of those affected by chronic neurologic disorders, including
Parkinson’s disease, multiple sclerosis, epilepsy, and Alzheimer’s
disease. Adamas has pioneered a platform to develop medicines for
chronic neurologic disorders based on an understanding of the
time-dependent biologic processes responsible for disease activity
and drug response to potentially achieve symptomatic relief without
tolerability issues. The company’s most advanced product candidate,
ADS-5102, is a high-dose amantadine, taken once daily at bedtime,
in development for levodopa-induced dyskinesia in people with
Parkinson’s disease and walking impairment in people with multiple
sclerosis. A New Drug Application supporting ADS-5102 for the
treatment of levodopa-induced dyskinesia in people with Parkinson’s
disease is under review by the FDA with a PDUFA date of August 24,
2017. Adamas is exploring other indications for ADS-5102 for
further development. Adamas is also investigating ADS-4101 for the
treatment of partial onset seizures in patients with epilepsy.
Additionally, Adamas’ licensed assets, are currently marketed by
Allergan under the brand names NAMENDA XR® and NAMZARIC®, and
Adamas is eligible to receive royalties on sales of these medicines
beginning in June 2018 and May 2020, respectively. For more
information, please visit www.adamaspharma.com.
NAMENDA XR® and NAMZARIC® are trademarks of Merz
Pharma GmbH & Co. KGaA.
Forward-looking Statements
Statements contained in this press release regarding matters that
are not historical facts are "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including but not limited to, statements contained in this
press release regarding the potential approval of ADS-5102 for the
treatment of levodopa-induced dyskinesia in people with Parkinson's
disease. Words such as "expect," "anticipate," and similar
expressions (as well as other words or expressions referencing
future events, conditions, or circumstances) are intended to
identify forward-looking statements. Because such statements are
subject to risks and uncertainties, actual results may differ
materially from those expressed or implied by such forward-looking
statements. For a description of risks and uncertainties that could
cause actual results to differ from those expressed in
forward-looking statements, including risks relating to the timing
and potential success of ADS-5102; Adamas’ ability to successfully
obtain approval and orphan drug designation and commercialize
ADS-5102 in the U.S. and receive the full amount of the loan
proceeds under the HCR agreement and the applicable interest and
royalty payment rate applicable during the term of the loan
agreement; Adamas' research, clinical, development and commercial
activities relating to ADS-5102 and ADS-4101; the regulatory and
competitive environment for products covered by patents with
limited term and scope of exclusivity protection; and Adamas'
business in general, see Adamas' Annual Report on Form 10-K filed
with the Securities and Exchange Commission on February 28, 2017.
Investors are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
release. Adamas undertakes no obligation to update any
forward-looking statement in this press release.
Contact:
Martin Forrest
Vice President, Corporate Communications & Investor Relations
Adamas Pharmaceuticals, Inc.
Phone: 510-450-3528
Email: ir@adamaspharma.com
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