MediGene sells full European rights for Eligard® to Astellas for EUR 25 million and ongoing royalties
(Thomson Reuters ONE) -
MediGene AG / MediGene sells full European rights for Eligard® to Astellas for EUR 25 million and ongoing royalties processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement.
* Astellas to make one-offf payments totaling EUR 25 million
* MediGene to remain entitled to royalties
* No further costs to MediGene
* Sale price reflects the full NPV of all future Eligard® revenues while
allowing MediGene to benefit from continued Eligard® growth
* Analyst and press conference call and webcast tomorrow, July 20, at 11 a.m.
(CEST)
Martinsried/Munich, July 19, 2010. MediGene AG (Frankfurt, Prime Standard, MDG,
TecDAX) announces the sale of full European marketing and distribution rights to
Eligard(®) (leuprolide acetate, for the treatment of hormone-dependent prostate
cancer) to Astellas Pharma Europe Ltd. (London, "Astellas"), previously
MediGene's European marketing partner for Eligard(®). MediGene acquired these
rights from TOLMAR Therapeutics Inc. (formerly Atrix Laboratories Inc.) in
2001. In return for the Eligard(®) license, MediGene will receive EUR 25 million
in cash from Astellas as well as royalties on future product sales. For
MediGene, all future costs, obligations and risks associated with the supply of
Eligard(® )to Astellas, as well all future procurement costs and license
payments to TOLMAR, will cease within the next months.
This agreement will strengthen MediGene's financial situation and provide the
opportunity for MediGene to profit from future growth of Eligard(®) sales. This
would not be possible under the former deal structure since MediGene's net
margin decreased once net sales by Astellas exceeded a certain threshold,
capping royalty receipts.
MediGene will now receive a low single-digit royalty on net sales of Eligard(®)
generated by Astellas in Europe. In 2009, MediGene's net participation in
Eligard(®) sales by Astellas totalled about 6%. In future, MediGene will receive
about one third of this margin on Eligard(®) in-market sales. According to the
contract, Astellas will pay EUR 25 million in three tranches as the steps of
transfer of the rights are concluded over the next six to twelve months (EUR 5
million upon signature, EUR 15 million anticipated within six to eight months,
EUR 5 million anticipated within six to twelve months).
Arnd Christ, MediGene's CFO, commented: "This is an excellent deal for MediGene,
both in financial and strategic terms. It not only reflects the full NPV of all
future Eligard(®) revenues according to the previous deal structure, but also
provides us with significant and non-dilutive financing in a very tough capital
markets environment. Furthermore, the structure of the deal allows MediGene to
continue to benefit from the increasing revenue from Eligard(®) which was not
possible under the previous structure. The significant improvement of our
balance sheet and the simplification of the Eligard(®) deal structure allow us
to fund growth opportunities and thus strengthening the future pipeline of the
company."
"We are delighted to have reached this agreement with MediGene which confirms
our strong commitment to meeting the needs of patients in the fields of urology
and oncology," added Masao Yoshida, President and CEO of Astellas Pharma Europe
Ltd. "We have a strong track record in urology and look forward to continuing
applying our proven expertise to all aspects of the marketing and distribution
of this important treatment throughout Europe."
Analyst and press conference call and webcast: An analyst and press conference
call in English will take place tomorrow, July 20, at 11 a.m. (CEST), and will
be webcast live. The webcast and synchronized presentation slides can be
accessed at www.medigene.com . A recording of the live presentation will also be
available thereafter.
About Astellas: Astellas Pharma Europe Ltd. is a subsidiary of Astellas Pharma
Inc. which is located in Tokyo, Japan. Astellas is a pharmaceutical company
dedicated to improving the health of people around the world through the
provision of innovative and reliable pharmaceuticals. Astellas has approximately
15,000 employees worldwide. The organization is committed to becoming a global
category leader in urology, immunology & infectious diseases, neuroscience, DM
complications & metabolic diseases and oncology. For more information on
Astellas Pharma Europe Ltd., please visit the website at http://www.astellas.eu.
This press release contains forward-looking statements representing the opinion
of MediGene as of the date of this release. The actual results achieved by
MediGene may differ significantly from the forward-looking statements made
herein. MediGene is not bound to update any of these forward-looking statements.
MediGene(®) is a registered trademark of MediGene AG. Eligard(®) is a registered
trademark of Tolmar Therapeutics, Inc. These trademarks may be owned or licensed
in select locations only.
- ends -
MediGene AG is a publicly listed (Frankfurt, Prime Standard: MDG, TecDAX)
biotechnology company located in Martinsried/Munich, Germany, with subsidiaries
in Oxford, UK and San Diego, USA. MediGene is the first German biotech company
to have drugs on the market which are distributed by partner companies. It has
several drug candidates in clinical development and possesses innovative
platform technologies. MediGene focuses on clinical research and development of
novel drugs with focus on oncology.
Contact MediGene AG
Email:investor(at)medigene.com
Fax: ++49 - 89 - 85 65 - 2920
Julia Hofmann / Dr. Nadja Wolf, Public Relations, Tel.: ++49 - 89 - 85 65 - 3324
Dr. Georg Dönges, Investor Relations, Tel.: ++49 - 89 - 85 65 - 2946
[HUG#1432654]
--- End of Message ---
MediGene AG
Lochhamer Strasse 11 Martinsried / München Germany
WKN: 502090;ISIN: DE0005020903;
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Freiverkehr in Niedersächsische Börse zu Hannover,
Prime Standard in Frankfurter Wertpapierbörse,
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Source: MediGene AG via Thomson Reuters ONE
Unternehmensinformation / Kurzprofil:
Datum: 19.07.2010 - 21:34 Uhr
Sprache: Deutsch
News-ID 24126
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contact information:
Town:
Martinsried / München
Kategorie:
Business News
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