IXS has made a deal with Royalty Pharma - big private firm that has done many million of $$ worth of royalty deals on biotech drugs.
Here is a quick overview:The origins of Royalty Pharma can be traced to the 1980s when certain members of the Company’s management and Investment Committee pioneered the use of royalty interests to fund the clinical development of some pioneering biotechnology products such as Amgen’s Neupogen. Subsequently, these members formed two ‘proof of principal’ investment vehicles to acquire the royalty interests and hold them as investments.
Since inception in 1996, through predecessor entities Royalty Pharma has purchased royalties in ten leading marketed biopharmaceuticals: Amgen’s Neupogen/Neulasta®, Genentech’s Rituxan®, Celgene’sThalomid®, Lilly’s and Centocor’s ReoPro®, Centocor’s Retavase®, Chiron’s TOBI®, Norvartis’ Simulect®, Roche’s Zenapax®, Ligand’s Targentin capsules and Bristol Myers’ Zerit. These products generated more than $5 billion in worldwide sales in 2004 and as a group continue to grow at a significant pace. In addition, the Company has purchased the royalty rights of four products that are in late-stage clinical trials: Entereg, Lasofoxifene, Bazedoxifene and Variza.
Royalty Pharma has purchased a second royalty interest from InNexus Biotechnology Inc. in an additional product targeting cancer based on InNexus's Dynamic Cross Linking (DXL) antibody enhancement technology.
Under the terms of the agreement, Royalty Pharma exercised its option to purchase a second royalty interest for $2.5-million. Royalty Pharma purchased a first royalty interest from InNexus for $2-million in April, 2007, and made an additional at-market equity investment in InNexus in the amount of $1-million ($1.01 per share). The total purchase price for the two royalty interests may be increased by up to an additional $30-million for the two products if certain conditions are fulfilled.
Pablo Legorreta, chief executive officer of Royalty Pharma, stated: "We are very excited to be working with Mr. Morhet and purchasing our second royalty interest from InNexus. We are pleased that InNexus has launched its first product based on their DXL technology into preclinical development and look forward to their future products, achievements and successes."