New York, NY, August 22, 2005 - Royalty Pharma and Memorial Sloan-Kettering Cancer Center ("MSKCC") announced today that they have completed the sale of a portion of MSKCC’s royalty interest in Neupogen® and Neulasta® worldwide for all countries except the United States, China, Japan, South Korea, North Korea and Taiwan. MSKCC will receive $142 million in cash up-front plus certain additional payments, should yearly sales of Neupogen and Neulasta in certain specified countries exceed certain agreed sales hurdles. The royalty revenue is derived from the sale of Neupogen® and Neulasta® in more than sixty countries. In January of 2004, Royalty Pharma acquired a portion of MSKCC’s royalty interest in Neupogen® and Neulasta® in the United States. JPMorgan served as exclusive financial advisor to MSKCC on this transaction.
“We are delighted to add the non-US royalty in Neupogen/Neulasta to our portfolio and increase our investment in these important products,” said Pablo Legorreta, Chief Executive Officer of Royalty Pharma. “We are also pleased to have completed another transaction with MSKCC, one of the world’s leading cancer research institutions and one of Royalty Pharma’s valued shareholders. Our goal is to continue partnering with leading research institutions, hospitals, universities and biopharmaceutical companies to provide financing sources with which they can pursue their critical missions and to assist them in better managing the concentrated risks in their royalty holdings. This transaction further validates our strategy and underscores our position as a leader in our industry.”
“Memorial Sloan-Kettering Cancer Center is pleased to conclude this transaction, which reinforces the importance of our research programs. The net proceeds from this sale will be used to reinvest in MSKCC’s basic and translational research programs and facilities, which we hope will produce new discoveries that will benefit our patients and cancer patients elsewhere," said John R. Gunn, Executive Vice President of Memorial Sloan-Kettering Cancer Center.
Clifton S. Robbins, a member of MSKCC’s Boards of Overseers and Managers, who chair sits Joint Finance and Funding Committee, noted that the revenue provided by these products is a significant source of funding for the Center’s mission of cancer research. “The sale provides further diversification and thus stability to the Center’s portfolio, which is used to support this mission,” he said.
About Neupogen® and Neulasta®
Neupogen® or granulocyte colony stimulating factor (G-CSF) is a genetically engineered version of a naturally occurring protein that is the body’s primary defense against bacterial infection. Neupogen® was launched by Amgen Inc. in February of 1991. Neupogen® is indicated for use in cancer patients receiving myelosuppressive chemotherapy; patients with acute myeloid leukemia receiving induction or consolidation chemotherapy; cancer patients receiving bone marrow transplants; patients undergoing peripheral blood progenitor cell collection and therapy; and patients with severe chronic neutropenia.
Neulasta® is a long-lasting version of Neupogen® that was launched in the second quarter of 2002 in the United States. Because of its longer half-life in the body, a single injection of Neulasta® can take the place of seven to ten daily injections of Neupogen.
About Royalty Pharma
Royalty Pharma invests in pharmaceutical and biotechnology product royalties and other revenue-producing intellectual property. Royalty Pharma has been providing capital to research institutions, inventors and life science companies in exchange for royalty interests since 1996. The company owns royalty interests in thirteen other leading marketed biopharmaceuticals, including, among others, Gilead Sciences’ Truvada® and Emtriva®, Amgen’s Neupogen® and Neulasta®, Genentech's and Biogen Idec's Rituxan®, Celgene's Thalomid®, Eli Lilly's and J&J/Centocor's ReoPro®, Protein Design Labs’ Retavase®, and Chiron’s TOBI®. Royalty Pharma also owns royalty interests in five product candidates: GlaxoSmithKline's and Adolor's Entereg®, Pfizer's Oporia, Wyeth's bazedoxifene and bazedoxifene/CE, and Gilead’s and Bristol-Myers Squibbs’ triple-fixeddose combination product containing emtricitabine, which is currently in development. More information on Royalty Pharma is available at www.royaltypharma.com.
About Memorial Sloan-Kettering Cancer Center
Founded in 1884, Memorial Sloan-Kettering Cancer Center is the world's oldest and largest institution devoted to prevention, patient care, research, and education in cancer. Its scientists and clinicians generate innovative approaches to better understand, diagnose and treat cancer. MSKCC specialists are leaders in biomedical research and in translating the latest research toadvance the standard of cancer care worldwide. More information on Memorial Sloan-Kettering Cancer Center is available at www.mskcc.org.