CAMBRIDGE, Mass., Sept. 17 Radius Health ("Radius")announced today that it has granted Novartis (NYSE: NVS) an option to obtainan exclusive worldwide license (except Japan) to develop and commercialize allformulations of BA058, Radius' osteoporosis drug candidate. BA058 is aproprietary analog of hPTHrP (human parathyroid hormone-related protein)currently in Phase II development by Radius. In a separate but relatedagreement, the MPM Bio IV NVS Strategic Fund L.P. has purchased $10 million ofSeries C preferred stock of Radius.
In the event that Novartis exercises the option to license BA058, Novartiswould assume the global clinical development, manufacturing, and marketing ofBA058 and all associated costs. Radius would receive payments on the optionexercise and on successful completion of certain development, regulatory, andcommercial milestones. These payments together could total more than $500million, part of which will be paid to Ipsen (Euronext: FR0010259150; IPN),from which Radius licensed BA058 in 2005. In addition, Radius would beeligible to receive royalties on product sales and has retained the option toco-commercialize BA058 in the United States. Additional terms were notdisclosed.
"It was our stated intention to partner BA058 prior to commencing PhaseIII development, as this offers the best opportunity to maximize its valuepotential for Radius while expediting its development for the patients whoneed it," said C. Richard Lyttle, Ph.D., President and CEO of Radius. "Throughthis innovative option arrangement, we have put in place an early mechanism topartner BA058 with Novartis, a global leader in the field of osteoporosis."
"This major commitment by the MPM Bio IV NVS Strategic Fund L.P. reflectsour belief in the potential of BA058 to address important unmet needs forosteoporosis patients in the near future, and in the attractive commercialpotential of Radius," said Ansbert Gadicke, MD, General Partner of MPM Capitaland General Partner of the MPM Bio IV NVS Strategic Fund L.P. "We look forwardto following the progress of this exciting bone anabolic agent and to itspotential late-stage development by Novartis."
PTHrP (parathyroid hormone-related protein) is a critical peptide forpromoting new bone formation, with a distinct role from PTH (parathyroidhormone), which primarily regulates calcium homeostasis and bone resorption.BA058 is Radius' proprietary analog of hPTHrP currently in Phase II clinicaltrials for the treatment of osteoporosis in postmenopausal women. BA058 isdesigned to build bone without inducing hypercalcemia or significantresorption. Radius acquired exclusive worldwide rights (excluding Japan) todevelop, manufacture, and distribute BA058 and its analogs from Ipsen in 2005.
About Radius (www.radiuspharm.com)
Radius is a leading company in the discovery and development of a newgeneration of drug therapies for osteoporosis and women's health. Radius hasraised $91.5 million in private equity financing since its establishment in2003 and is based in Cambridge, MassachusettsContact: Nick Harvey Chief Financial Officer (617) 551-4704