Published on March 3, 2010 at 1:43 AM
NPS Pharmaceuticals, Inc. (Nasdaq: NPSP) today announced the sale of its
royalty rights from sales of REGPARA® (cinacalcet HCl) to a
fund managed by DRI Capital, Inc., (Fund) for $38.4 million. Royalties
in excess of cumulative royalties of $96 million or 2.5 times the
upfront purchase price have been retained by NPS.
“This transaction allows us to access significant capital in a manner
that is non-dilutive to our shareholders”
“This transaction allows us to access significant capital in a manner
that is non-dilutive to our shareholders,” said Francois Nader, M.D.,
president and chief executive officer of NPS Pharmaceuticals. “The
proceeds from this sale will support our two registration programs,
teduglutide in short bowel syndrome and NPSP558 in hypoparathyroidism.”
NPS licensed cinacalcet HCl to Kyowa Kirin Pharma, a wholly-owned
subsidiary of Kyowa Kirin Holdings, for the drug’s development and
commercial sale in China, Japan, North and South Korea, and Taiwan.
Following review by the Pharmaceuticals and Medical Devices Agency
(PMDA), Japan’s Ministry of Health, Labor and Welfare (MHLW) approved
the drug for the treatment of patients with secondary
hyperparathyroidism during dialysis therapy.
Kyowa Kirin began commercializing cinacalcet HCl in Japan as REGPARA®
during the first quarter of 2008.
Under the agreement, Fund is entitled to receive royalty payments
related to net sales of REGPARA occurring on or after July 1, 2009. NPS
has received approximately $3.5 million in cumulative royalty revenue on
net sales of REGPARA arising prior to July 1, 2009. NPS expects to
report cash, cash equivalents and short- and long-term investments of
approximately $70 to $75 million at December 31, 2009 versus $106
million at December 31, 2008.
Source NPS Pharmaceuticals