NEW YORK, Dec. 18 Royalty Pharma and NorthwesternUniversity announced today that Northwestern has sold a portion of itsworldwide royalty interest in Lyrica(R) to Royalty Pharma for $700 million incash.
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A portion of the payment to Northwestern will go to the researchers whowere responsible for the chemical compound that serves as the basis forLyrica(R).
"We're very pleased to have reached this agreement with Royalty Pharma,"said Eugene S. Sunshine, Northwestern's senior vice president for business andfinance. "Beginning with the original research done at Northwestern, thedevelopment of Lyrica(R) has brought relief to thousands of patientsworldwide. This exemplifies the type of cutting-edge research that isoccurring at Northwestern."
"We are happy to add this royalty on an important pain therapy to ourdiversified portfolio of royalties on leading biopharmaceutical products,"said Pablo Legorreta, Chief Executive Officer of Royalty Pharma. "Thistransaction exemplifies our commitment to providing leading institutions suchas Northwestern with funds that will allow them to continue to pursue theiracademic and research initiatives. We are confident that these funds willresult in continued innovations and advances that will better people's lives."
Lyrica(R) is used to treat nerve pain associated with diabetes andshingles and to help manage pain caused by fibromyalgia. It is manufactured byPfizer, Inc., the world's largest research-based biomedical and pharmaceuticalcompany. Lyrica(R) is based on the chemical compound pregabalin, firstsynthesized at Northwestern.
The net proceeds from the partial sale of royalty rights will be placed inthe University's endowment, Sunshine said. As part of the endowment, theproceeds will be used in accordance with federal law to help support financialaid for undergraduate and graduate students; startup costs for theUniversity's research efforts; construction of new buildings and laboratoriesand improvements to existing facilities; and for other purposes.
"Essentially, we are converting a potential stream of future royaltyrevenues from Lyrica into an immediate cash payment," Sunshine explained. "Wecontinue to believe strongly in Lyrica's potential and Northwestern retains alarge portion of those royalty rights, but by doing this, we are diversifyingthe University's investments."
The percentage of the University's interest in the royalty payments thatwas sold today is not being disclosed.
Morgan Stanley is acting as structuring advisor and Covington & BurlingLLP is acting as the legal advisor to Northwestern University for this sale.Goodwin Procter LLP is acting as legal advisor to Royalty Pharma for thissale.
About Northwestern University
Founded in 1851, Northwestern University is a leading private research andteaching university with an enrollment of approximately 8,000 full-timeundergraduate students and approximately 7,000 full-time graduate andprofessional students on campuses in Evanston and Chicago, Illinois.
Northwestern combines innovative teaching and pioneering research in ahighly collaborative environment that transcends traditional academicboundaries. Northwestern provides students and faculty exceptionalopportunities for intellectual, personal and professional growth in a settingenhanced by the richness of Chicago.
For more information, go to: http://www.northwestern.edu
About Royalty Pharma
Royalty Pharma is the industry leader in acquiring revenue-producingintellectual property -- principally royalty interests in marketed and latestage biopharmaceutical products with a market value of over $4.5 billion.Royalty Pharma currently owns a diversified portfolio of royalty interests inseveral high-quality blockbuster biopharmaceutical product