logo
Share SHARE
FONT-SIZE Plus   Neg

Biogen Idec Sells BENLYSTA Royalty Rights To DRI Capital Managed Fund

Biogen Idec (BIIB: Quote) has sold to a DRI Capital managed fund its royalty and other rights pertaining to BENLYSTA to which Biogen Idec is entitled pursuant to a license deal with Human Genome Sciences Inc. (HGSI: Quote) and Glaxo Group Ltd. According to the agreement between Biogen Idec and DRI, Human Genome Sciences and Glaxo Group Ltd. would make royalty payments directly to DRI instead of to Biogen Idec. In turn, DRI would pay Biogen Idec a multiple of certain of the royalties received for the period covering October 2011 to September 2014.

Following that period, DRI would retain the royalty payments from BENLYSTA sales, with certain exceptions, including a one-time contingency payment that could be triggered if the cumulative royalties to DRI exceed an agreed amount. The initial payment by DRI to Biogen Idec, covering the royalty period from October 1, 2011 to March 30, 2012 is nearly $18.3 million and would be recognized into income as a gain in the third quarter.

BENLYSTA was approved by the US Food and Drug Administration in March 2011 and by the European Medicines Agency in July 2011 to treat systemic lupus erythematosus.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
Gas explosion in Fresno in California injured 11 people on Friday afternoon. Pacific Gas and Electric Co. (PG&E) said workers who are not affiliated with the company have struck a 12-inch natural gas transmission pipeline and the gas leaked was ignited due to the dig-in. Verizon Communications' FiOS TV service has modified its programming bundles and will now offer new packages so that users can subscribe only for channels they prefer to watch. Instagram, the photo sharing app owned by Facebook, has updated its community guidelines to disallow nudity and harassment in uploaded photos and pictures, as well as cyber bullying.
comments powered by Disqus
RELATED NEWS
Trade BIIB now with 
Follow RTT