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Strongbridge completes $181.7M sale of hormone drug to Novo Nordisk

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Thursday, December 20, 2018

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Strongbridge Biopharma on Wednesday closed its previously announced sale of the U.S. and Canadian rights for Macrilen to Novo Nordisk. Macrilen is approved to treat adult growth hormone deficiency.

Under the terms of the agreement, Strongbridge — which is based in Dublin, Ireland, and has its U.S. headquarters in Trevose, Bucks County, and targets rare diseases — received a one-time upfront cash payment of $145 million.

In addition, Novo Nordisk purchased 5.24 million ordinary shares of Strongbridge (NASDAQ: SBBP) common stock at $7 per share, resulting in gross proceeds of $36.7 million.

Strongbridge will be entitled to receive tiered royalties related to the sales of Macrilen through 2027. Novo Nordisk will also fund Strongbridge's rare endocrine commercial field organization to promote Macrilen in the United States for up to three years.

A portion of the upfront payment will be used by Strongbridge to fully repay the company's outstanding debt.

"The completion of this transaction significantly strengthens our financial position," said Matthew Pauls, president and CEO of Strongbridge.

Strongbridge acquired the U.S. and Canadian rights to Macrilen from Aeterna Zentaris (NASDAQ: AEZS), a Canadian biopharmaceutical company, in January. Strongbridge paid $24 million upfront along with royalty payments on product sales and undisclosed milestone payments in that transaction.

Pauls said the company next year intends to continue to focus on the development of Recorlev, a potential treatment of Cushing's syndrome, a condition which occurs when your body is exposed to high levels of the hormone cortisol. Pauls said Strongbridge also will seek to grow sales for Keveyis, the only FDA-approved treatment for primary periodic paralysis — a condition that can cause prolonged attacks of muscle weakness and, in some instances, temporary paralysis.

Author: John George
Source: Philadelphia Business Journal
2.33333333333
2.3 from 3 votes
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