Healthcare Industry News: emtricitabine
News Release - October 26, 2006
Royalty Pharma Announces Agreement Regarding the Purchase of the Rights to a Pre-Existing Royalty Interest in HUMIRA(R) From AstraZeneca and CATNEW YORK, Oct. 26 (HSMN NewsFeed) -- Royalty Pharma announced today that it has completed the purchase of the rights to a pre-existing royalty interest in HUMIRAŽ currently held by AstraZeneca plc's subsidiary, Cambridge Antibody Technology Limited (CAT). AstraZeneca will receive US$700 million for the sale, settled in cash (subject to adjustment for all royalty amounts accrued for and received by CAT since January 1, 2006). Following this transaction, Royalty Pharma will receive royalty revenue formerly payable to CAT based on all future sales of HUMIRAŽ, developed and marketed by Abbott.
"Royalty Pharma is excited to partner with AstraZeneca, one of the world's leading pharmaceutical companies, in this ground-breaking royalty transaction," said Pablo Legorreta, Chief Executive Officer of Royalty Pharma. "We believe that Royalty Pharma is in a unique position to collaborate with companies such as AstraZeneca to assist in optimizing the value of their strategic initiatives. We look forward to continuing to be the preeminent partner to leading research institutions, hospitals, universities, and biopharmaceutical companies. We are also pleased to expand the reach of our existing royalty portfolio, which includes leading oncology and antiviral products, to include HUMIRAŽ, the fastest growing anti-TNF therapy."
About Royalty Pharma
Royalty Pharma is the industry leader in acquiring revenue-producing intellectual property -- principally royalty interests in marketed and late stage biopharmaceutical products with a market value of over $2 billion. Royalty Pharma currently owns a diversified portfolio of royalty interests in several high-quality blockbuster biopharmaceutical products, including Amgen's NeupogenŽ and NeulastaŽ, Genentech's RituxanŽ, Gilead's EmtrivaŽ, TruvadaŽ and AtriplaŽ, Celgene's ThalomidŽ, and now Abbott's HumiraŽ. The company has a ten year history of providing value to holders of royalty interests, including its joint $525 million acquisition with Gilead Sciences of Emory University's emtricitabine royalty interest and its acquisitions of approximately 80% of Memorial Sloan Kettering's U.S. and international royalty interests in NeupogenŽ and NeulastaŽ for over $400 million. The strong market position enjoyed by the products in which Royalty Pharma owns royalties -- generally the sole or number one product in their therapeutic classes -- and its revenue diversification are some of the key attributes contributing to the investment grade rating of Royalty Pharma's finance trust, which is further wrapped by a mono-line insurer to "AAA"/"Aaa" by S&P and Moody's. More information on Royalty Pharma is available at http://www.royaltypharma.com.
Source: Royalty Pharma
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