Immunomedics and Royalty Pharma Announce Royalty Funding and Stock Purchase Agreements Totalling $250 Million
January 08 2018 - 8:30AM
Royalty Pharma acquires Royalty Rights on Global
Net Sales of Sacituzumab Govitecan (IMMU-132) Across All
Indications for $175 Million
Immunomedics, Inc., (NASDAQ:IMMU) (“Immunomedics”
or the “Company”) and Royalty Pharma today announced that
Immunomedics has agreed to sell tiered, sales-based royalty rights
on global net sales of sacituzumab govitecan to Royalty Pharma for
$175 million. Royalty Pharma has also purchased $75 million in
common stock of Immunomedics, at $17.15 per share, which represents
a more than 15% premium over the stock’s 15-day trailing average
closing price.
This $250 million funding provides Immunomedics
the resources to support the Company’s next phase of growth as it
focuses on developing sacituzumab govitecan in metastatic
triple-negative breast cancer (TNBC), advanced urothelial cancer
and other indications of high medical need and on further building
its clinical, medical affairs, commercial and manufacturing
infrastructure. The royalty rate commences at 4.15 percent on net
annual sales of up to $2 billion, declining step-wise based on
sales tiers to 1.75 percent on net global annual sales exceeding $6
billion. This transaction will provide sufficient cash to fund
operations into 2020.
“The investment by Royalty Pharma supports our
stated strategy at Immunomedics of becoming a fully integrated
biopharmaceutical company and a recognized leader in the field of
antibody-drug conjugates,” commented Michael Pehl, President and
Chief Executive Officer of Immunomedics. “This agreement extends
our runway beyond the approval and initial commercialization of
sacituzumab govitecan for metastatic TNBC and provides us with the
necessary resources for a full clinical and commercial
infrastructure. Royalty Pharma has a strong track record of
identifying outstanding products, and we look forward to working
with them as we continue to advance sacituzumab govitecan and other
drugs in our pipeline to improve the outcomes of patients with hard
to treat cancers.”
“Sacituzumab govitecan is one of the most
exciting targeted therapies currently in development in oncology.
It holds great potential to fulfil the unmet medical need for
patients with metastatic TNBC, and we believe for other tumors
affecting many patients,” remarked Pablo Legorreta, Founder &
Chief Executive Officer of Royalty Pharma. “We are excited to join
forces with Immunomedics in this mutually beneficial transaction to
further advance sacituzumab govitecan into multiple indications
with currently limited treatment options to positively impact
patients, investors and stakeholders.”
“The Board over the past several months has been
exploring a multitude of opportunities that provide us with the
requisite financial resources to execute on our business
priorities,” said Dr. Behzad Aghazadeh, Chairman of the Board of
Immunomedics. “The agreement with Royalty Pharma announced today
certainly meets that criteria, while importantly, also maintains
the strategic flexibility of the Company, as we continue to explore
opportunities to maximize shareholder value.”
Please refer to the current report on Form 8-K
to be filed today for a further description of the terms of the
transaction agreements, including certain call rights and
termination rights of the parties as described therein.
DLA Piper LLP (US) served as legal advisor to
Immunomedics and Goodwin Procter LLP acted as legal advisors to
Royalty Pharma on the transaction.
About ImmunomedicsImmunomedics
is a clinical-stage biopharmaceutical company developing monoclonal
antibody-based products for the targeted treatment of cancer,
autoimmune disorders and other serious diseases. Immunomedics’ most
advanced product candidate is sacituzumab govitecan (IMMU-132), an
antibody-drug conjugate that has received Breakthrough Therapy
Designation from the FDA for the treatment of patients with
metastatic triple-negative breast cancer who have failed at least
two prior therapies for metastatic disease. Immunomedics’ primary
goal is to bring sacituzumab govitecan to market for the benefit of
patients and the creation of stockholder value. For additional
information on the Company, please visit its website at
https://immunomedics.com/. The information on its website does not,
however, form a part of this press release.
About Royalty PharmaFounded in
1996, Royalty Pharma is the industry leader in acquiring
revenue-producing intellectual property, with over $15 billion in
royalty assets. Royalty Pharma funds innovation in life sciences
both directly and indirectly: directly when it partners with life
sciences companies to co-develop and co-fund products in late-stage
clinical trials, and indirectly when it acquires existing royalty
interests from the original innovators (academic institutions,
research hospitals, foundations and inventors). The company's
portfolio includes royalty interests in over 40 approved products
including AbbVie's Humira, AbbVie and J&J's Imbruvica, Biogen's
Tecfidera, Vertex's Kalydeco and Orkambi, J&J's Remicade,
Merck's Januvia, Gilead's Atripla and Truvada, Pfizer's Lyrica, and
Astellas and Pfizer's Xtandi. Royalty Pharma is also a leading
investor in pre-approval royalties, having committed over $850
million to direct R&D funding in exchange for royalties, and
having invested over $4 billion in royalties on pre-approval
products since 2011.
Immunomedics’ cautionary note regarding
forward-looking statementsThis release, in addition to
historical information, may contain forward-looking statements made
pursuant to the Private Securities Litigation Reform Act of 1995.
Such statements, including statements regarding clinical trials
(including the funding therefor, anticipated patient enrollment,
trial outcomes, timing or associated costs), regulatory
applications and related timelines, out-licensing arrangements,
forecasts of future operating results, potential collaborations,
and capital raising activities, timing for bringing any product
candidate to market, involve significant risks and uncertainties
and actual results could differ materially from those expressed or
implied herein. Factors that could cause such differences include,
but are not limited to, the Company’s dependence on business
collaborations or availability of required financing from capital
markets, or other sources on acceptable terms, if at all, in order
to further develop our products and finance our operations, new
product development (including clinical trials outcome and
regulatory requirements/actions), the risk that we or any of our
collaborators may be unable to secure regulatory approval of and
market our drug candidates, risks associated with the outcome of
pending litigation and competitive risks to marketed products, and
the Company’s ability to repay its outstanding indebtedness, if and
when required, as well as the risks discussed in the Company’s
filings with the Securities and Exchange Commission. The
Company is not under any obligation, and the Company expressly
disclaims any obligation, to update or alter any forward-looking
statements, whether as a result of new information, future events
or otherwise.
Immunomedics
Contacts:Investor: Dr. Chau ChengSenior
Director, Investor Relations & Corporate Secretary(973)
605-8200, extension 123ccheng@immunomedics.com
Media:Dan Zacchei / Josh
HochbergSloane & Company212-486-9500
Dzacchei@sloanepr.comJhochberg@sloanepr.com
Royalty Pharma
Contacts:Alexander v. Perfall Vice President, Investor
Relations & Public Affairs (212) 883-2298,
erfall@royaltypharma.com
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