DGAP-News: PAION RECEIVES EURO 20 MILLION FOR SALE OF REMAINING DESMOTEPLASE RIGHTS TO H. LUNDBECK A/S
(firmenpresse) - DGAP-News: PAION AG / Key word(s): Disposal
PAION RECEIVES EURO 20 MILLION FOR SALE OF REMAINING DESMOTEPLASE
RIGHTS TO H. LUNDBECK A/S
28.02.2012 / 15:16
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PAION RECEIVES EURO 20 MILLION FOR SALE OF REMAINING DESMOTEPLASE RIGHTS TO
H. LUNDBECK A/S
- Proceeds secure financial liquidity into 2014
- PAION to focus on specialty pharma strategy in anaesthesia
- Since 2004 more than EUR 80 million revenues from Desmoteplase
Aachen (Germany), 28 February 2012 - PAION AG (ISIN DE000A0B65S3; Frankfurt
Stock Exchange Prime Standard: PA8) today announces that its wholly owned
affiliate PAION Deutschland GmbH (together with PAION AG 'PAION') has sold
all of its remaining development, commercial and IP rights as well as
know-how to Desmoteplase to H. Lundbeck A/S ('Lundbeck') and Lundbeck
enters into PAION's existing agreement with Bayer Pharma AG ('Bayer'). The
purchase price amounts to EUR 20.1 million. As a result, further
obligations of Lundbeck towards PAION, as defined in the previous
Desmoteplase licence agreement, such as milestone payments and royalties,
will lapse as well as all milestone and royalty obligations towards Bayer.
In 2005, PAION granted Lundbeck exclusive worldwide rights outside the USA
to develop and market Desmoteplase to treat acute ischemic stroke. In 2008,
this deal was expanded to provide Lundbeck exclusive, global rights to
develop and commercialise Desmoteplase. PAION retained an option to
participate in commercialising Desmoteplase in German-speaking countries.
In 2010, PAION expanded the agreement further and granted Lundbeck research
rights and access to potential Desmoteplase follow-on compounds that were
identified by PAION as well as patent maintenance rights. With today's
agreement, all remaining project rights and the agreement with Bayer are
transferred to Lundbeck. An amount of EUR 16.5 million is due at closing
which is expected to occur later today; EUR 2.1 million of the remaining
amount are due after further data and know-how transfer have been
completed, which is expected a short period after the closing. EUR 1.5
million will be placed in escrow for 12 months and is payable thereafter.
In 2008, PAION decided, through the acquisition of CeNeS Pharmaceuticals,
to expand in the field of anaesthesia and to de-risk its business by
transferring additional rights to Lundbeck through the expanded
Desmoteplase licence agreement. With the transaction announced today, PAION
has made the strategic decision to continue this path and to completely
abandon the high-risk area of stroke and its exposure to the success of
Desmoteplase. PAION's focus is now on out-licensing Remimazolam and to
position itself as a specialist player in the area of anaesthesia and
critical care. The proceeds from the sale of Desmoteplase will be used
accordingly.
Based on the results of the market research performed by PAION in 2011,
PAION believes that its lead in-house compound, Remimazolam, is an
excellent candidate to serve as a platform for PAION to add other
commercialisation opportunities in anaesthesia. The near-term goal remains
to conclude a partnering agreement for Remimazolam supporting its new
strategy.
Following the completion of the transaction announced today PAION will have
approximately EUR 22.5 million in cash and cash equivalents. This
transaction ensures sufficient funding of corporate activities into 2014.
This does not include further revenues from existing and future licence
agreements. PAION's partnering flexibility for Remimazolam is strengthened
significantly by the improved cash position.
Dr. Wolfgang Söhngen, CEO of PAION commented, 'We are determined to focus
all our business and financial resources on the future development and
commercialisation of our anaesthesia franchise with Remimazolam as our lead
compound.' He continued, 'We look forward to building PAION as a specialty
player in the area of anaesthesia, with the near-term priority on achieving
a solid partnership for Remimazolam. We also would like to take this
opportunity to sincerely thank Lundbeck for a loyal and supportive
partnership and wish them a successful further development of Desmoteplase.
We are proud to mention that Desmoteplase, as key value driver, has
contributed in total more than EUR 80 million to PAION's business.'
On 14 March 2012 PAION will provide a pipeline and strategy update and
financial outlook together with the release of its Full Year Financial
Results 2011.
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About Desmoteplase
Desmoteplase, the most fibrin-specific plasminogen activator known today,
is a genetically engineered version of a clot-dissolving protein found in
the saliva of the vampire bat Desmodus rotundus. It is currently being
developed for the treatment of acute ischemic stroke for which it has
received fast-track designation from the U.S. Food and Drug Administration.
The treatment is being carried out in a timeframe of three to nine hours
post onset of stroke symptoms - a time window for which there currently is
no approved drug treatment.
So far Desmoteplase has been tested in two Phase II studies and one Phase
III study for the treatment of ischemic stroke. In January 2008 H. Lundbeck
A/S obtained worldwide rights to Desmoteplase from PAION. A clinical Phase
III programme with Desmoteplase was initiated by Lundbeck in December 2008,
recruiting patients in Europe, North and South America, Africa and Asia
Pacific. In parallel Lundbeck also focuses on the development of the
compound for the Japanese market, for which Lundbeck initiated a Phase II
study (DIAS-J) in March 2010.
About PAION
PAION is headquartered in Aachen, Germany and has a second site in
Cambridge, UK. The company is specialised in developing innovative drugs
for the hospital-based treatment in indications for which there is a
substantial unmet medical need. PAION is extending its proven 'Search&Develop' business model, based on its core expertise in drug development,
by transforming into a more focused and fully-integrated specialty Pharma
Company, collaborating with partners in all aspects of the value chain to
maximise return to investors.
About Remimazolam
Remimazolam is an innovative short-acting general anaesthetic/sedative.
Sedatives are used, for example, in endoscopic procedures such as
colonoscopies. After intravenous administration Remimazolam rapidly induces
the desired sedation. Importantly, this sedative effect quickly disappears.
This rapid offset of the effect of the substance is due to its metabolism
by tissue esterase enzymes that are widely distributed throughout the body.
Remimazolam is being developed as a sedative agent for day case procedures
(procedural sedation), which has been studied by PAION in three clinical
studies. PAION's partner ONO is performing a Phase II study in the
indication 'induction and maintenance of anaesthesia'. Remimazolam also has
great potential as a sedative for patients in the Intensive Care Unit
(ICU).
Contact
Ralf Penner
Director Investor Relations / Public Relations
PAION AG
Martinstrasse 10-12
52062 Aachen - Germany
Phone: +49 241 4453-152
E-mail: r.penner(at)paion.com
www.paion.com
Disclaimer:
This release contains certain forward-looking statements concerning the
future business of PAION AG. These forward-looking statements contained
herein are based on the current expectations, estimates and projections of
PAION AG's management as of the date of this release.They are subject to a
number of assumptions and involve known and unknown risks, uncertainties
and other factors. Should actual conditions differ from the Company's
assumptions, actual results and actions may differ materially from any
future results and developments expressed or implied by such
forward-looking statements. Considering the risks, uncertainties and other
factors involved, recipients should not rely unreasonably upon these
forward-looking statements. PAION AG has no obligation to periodically
update any such forward-looking statements to reflect future events or
developments.
End of Corporate News
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28.02.2012 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: PAION AG
Martinstr. 10-12
52062 Aachen
Germany
Phone: +49 (0)241-4453-0
Fax: +49 (0)241-4453-100
E-mail: info(at)paion.com
Internet: www.paion.com
ISIN: DE000A0B65S3
WKN: A0B65S
Listed: Regulierter Markt in Frankfurt (Prime Standard);
Freiverkehr in Berlin, Düsseldorf, Hamburg, München,
Stuttgart
End of News DGAP News-Service
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