PDL BioPharma To Acquire Novartis Hypertensive Drug
PDL BioPharma, a company managing pharmaceutical patents and assets, plans to make an equity investment in Noden Pharma DAC, a new privately held company that has executed a purchase agreement with Novartis AG to acquire exclusive worldwide rights to manufacture, market, and sell the branded prescription medicine product sold under the name Tekturna and Tekturna HCT in the United States and Rasilez and Rasilez HCT in the rest of the world.
The product’s active ingredient is aliskiren, which is indicated for the treatment of hypertension. The drug was previously marketed by Novartis and had estimated global sales in 2015 of $154 million.
The transactions are expected to close upon Hart-Scott-Rodino regulatory approval or expiration of the related waiting period. PDL’s equity investment will ultimately result in an 88% equity interest in Noden.
PDL expects to make equity contributions to Noden totaling approximately $107 million in the first year of the transaction, with an initial equity investment of $75 million to be made upon closing of the transaction, and an additional $32-million equity contribution commitment on the one-year anniversary of the closing of the transaction. Noden is also expected to obtain debt financing in conjunction with the PDL equity investment. PDL may contribute additional amounts of equity depending on the amount of debt obtained by Noden, and as needed for specified milestone payments or other purposes. PDL will have three of the five seats on Noden’s board of directors.
Source: PDL BioPharma