Royalty Pharma Transaction of up to $56 Million Underscores Value of LCPP Assets
Royalty Pharma (RP) owns royalty interests in 9 products, including Rituxan®, Neupogen® and ReoPro®
RP acquired rights/options to a revenue stream from Ligand’s partners’ sales of three SERMs in Phase III
RP has paid Ligand $9 million for right to receive 0.375% of net sales for 10 years. RP has options to purchase, at escalating prices, up to an additional .875% of sales:
- For up to another $7.4 million in 2002
- For an additional $12.5 million in 2003
- For up to $26.5 million through the second quarter of 2004
Maximum value: $56 million for up to 1.25% of sales
Option exercises enable Ligand to increase near-term resources substantially, accelerate internal product R&D investments