AEterna Zentaris Agrees to Sell Cetrotide(R) Royalty Stream for $52.5 Million to Cowen Healthcare Royalty Partners
November 12 2008 - 7:15AM
PR Newswire (US)
All amounts are in U.S. dollars QUEBEC CITY, Nov. 12
/PRNewswire-FirstCall/ -- AEterna Zentaris Inc. (NASDAQ: AEZS; TSX:
AEZ), a global biopharmaceutical company focused on endocrine
therapy and oncology, today announced that it has signed a
definitive agreement to sell to Cowen Healthcare Royalty Partners,
L.P. ("CHRP") its rights to royalties on future sales of
Cetrotide(R) covered by its license agreement with Merck Serono.
The license agreement between AEterna Zentaris and Merck Serono was
signed in 2000 and granted Merck Serono exclusive rights to market,
distribute and sell Cetrotide(R) worldwide, with the exception of
Japan, in the field of in vitro fertilization. On closing, AEterna
Zentaris will receive $52.5 million from CHRP. In addition,
contingent on 2010 net sales of Cetrotide(R) reaching a specified
level, AEterna Zentaris would receive an additional payment of $2.5
million from CHRP. Under the terms of the agreement, if cetrorelix,
which is currently in Phase 3 clinical trials for the treatment of
benign prostatic hyperplasia, is approved for sale by European
regulatory authorities in an indication other than in vitro
fertilization, AEterna Zentaris has agreed to make a one-time cash
payment to CHRP in an amount ranging from $5 million up to a
maximum of $15 million. The amount which would be due to CHRP will
be higher the earlier the product receives European regulatory
approval. "We are very pleased with this transaction which is in
line with our strategy of generating non-dilutive financing through
non-core asset monetization," said Juergen Engel, Ph.D., President
and Chief Executive Officer of AEterna Zentaris. "We now expect to
end the year 2008 with approximately $50 million in cash, providing
us with the financial resources for the continued development of
cetrorelix in BPH." "Our investment in Cetrotide(R) is consistent
with our strategy to invest in unique commercial-stage products
with strong marketing partners, and attractive risk reward
profiles," said Todd C. Davis, Co-Founder and Managing Director of
CHRP. "There is a growing demand for fertility treatment products
around the globe and we believe Cetrotide(R) is well positioned to
expand its presence in the market." The transaction is expected to
close within the next 15 business days. RBC Capital Markets acted
as exclusive financial advisor to AEterna Zentaris in connection
with this transaction. About Cetrotide(R) (cetrorelix) Cetrotide(R)
(cetrorelix) was the first luteinizing hormone-releasing hormone
(LHRH) antagonist treatment approved for in vitro fertilization. It
is administered to women to prevent premature ovulation in order to
increase fertility success rate. Developed in cooperation with
Medicine Nobel-Prize winner, Professor Andrew Schally of Veterans
Affairs, Miami, Florida, it was launched in Europe in 1999 and in
the United States in 2001. Cetrotide(R) is currently marketed
worldwide by Merck Serono, except for Japan where it is marketed by
Nippon Kayaku and Shionogi. Cetrorelix is also currently in a Phase
3 program in benign prostatic hyperplasia involving 1,500 patients
in North America and Europe. First results are expected in Q3 2009
with an NDA filing to follow in 2010 and potential launch in 2011.
About Cowen Healthcare Royalty Partners Cowen Healthcare Royalty
Partners ("CHRP") is a global healthcare private equity firm with
over $500 million in capital under management. The firm invests
principally in commercial-stage biopharmaceutical and medical
device companies and products, through the purchase of royalty or
Synthetic Royalty(SM) interests, debt and equity. CHRP's investment
team has over 90 years of healthcare related experience including
principal investing, structured finance, healthcare industry senior
management, Wall Street research and consulting, scientific and
clinical experience. For more information, please visit
http://www.cowenroyalty.com/. About AEterna Zentaris Inc. AEterna
Zentaris Inc. is a global biopharmaceutical company focused on
endocrine therapy and oncology, with proven expertise in drug
discovery, development and commercialization. News releases and
additional information are available at http://www.aezsinc.com/.
Forward-Looking Statements This press release contains
forward-looking statements made pursuant to the safe harbor
provisions of the U.S. Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and
uncertainties, which could cause the Company's actual results to
differ materially from those in the forward-looking statements.
Such risks and uncertainties include, among others, the
availability of funds and resources to pursue R&D projects, the
successful and timely completion of clinical studies, the ability
of the Company to take advantage of business opportunities in the
pharmaceutical industry, uncertainties related to the regulatory
process and general changes in economic conditions. Investors
should consult the Company's quarterly and annual filings with the
Canadian and U.S. securities commissions for additional information
on risks and uncertainties relating to the forward-looking
statements. Investors are cautioned not to rely on these
forward-looking statements. The Company does not undertake to
update these forward-looking statements. We disclaim any obligation
to update any such factors or to publicly announce the result of
any revisions to any of the forward-looking statements contained
herein to reflect future results, events or developments except if
we are requested by a governmental authority or applicable law.
DATASOURCE: AETERNA ZENTARIS INC. CONTACT: Investor Relations:
Ginette Vallieres, Investor Relations Coordinator, (418) 652-8525
ext. 265, ; Media Relations: Paul Burroughs, Director of
Communications, (418) 652-8525 ext. 406,
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