Strongbridge Used Portion of $145 Million Upfront Cash Payment from Novo Nordisk to Fully Repay Outstanding Debt
DUBLIN, Ireland and TREVOSE, Pa., Dec. 19, 2018 (GLOBE NEWSWIRE) — Strongbridge Biopharma plc, (Nasdaq: SBBP), a global commercial-stage biopharmaceutical company focused on the development and commercialization of therapies for rare diseases with significant unmet needs, today announced the closing of the transaction with Novo Nordisk to transfer the rights to MACRILEN™ (macimorelin) in the United States and Canada. The terms of the transaction are as follows:
- Strongbridge received a one-time upfront cash payment of $145 million, of which a portion was used to fully repay outstanding debt.
- In addition, Novo Nordisk purchased 5.2 million ordinary shares of Strongbridge at a purchase price of $7.00 per share, resulting in gross proceeds of $36.7 million.
- Strongbridge will also be entitled to receive tiered royalties related to the sales of MACRILEN through 2027.
- Novo Nordisk will fund Strongbridge’s rare endocrine commercial field organization to promote MACRILEN in the U.S. for up to three years.
“As we near the end of 2018, the completion of this transaction significantly strengthens our financial position, and in 2019, the Company will continue to be very focused on rapidly progressing RECORLEV™ (levoketoconazole) for the potential treatment of Cushing’s syndrome as well as driving the growth of KEVEYIS® (dichlorphenamide),” said Matthew Pauls, president and chief executive officer of Strongbridge Biopharma.
About Strongbridge Biopharma
Strongbridge Biopharma is a global commercial-stage biopharmaceutical company focused on the development and commercialization of therapies for rare diseases with significant unmet needs. Strongbridge’s rare endocrine franchise includes RECORLEV™ (levoketoconazole), a cortisol synthesis inhibitor currently being studied in Phase 3 clinical studies for the treatment of endogenous Cushing’s syndrome, and veldoreotide extended release, a pre-clinical next-generation somatostatin analog being investigated for the treatment of acromegaly and potential additional applications in other conditions amenable to somatostatin receptor activation. Both RECORLEV and veldoreotide have received orphan drug designation from the FDA and the European Medicines Agency. The Company’s rare neuromuscular franchise includes KEVEYIS® (dichlorphenamide), the first and only FDA-approved treatment for hyperkalemic, hypokalemic, and related variants of primary periodic paralysis. KEVEYIS has orphan drug exclusivity in the United States.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the federal securities laws. The words “anticipate,” “estimate,” “expect,” “intend,” “may,” “plan,” “potential,” “project,” “target,” “will,” “would,” or the negative of these terms or other similar expressions are intended to identify forward-looking statements, although not all forward-looking statements contain these identifying words. All statements, other than statements of historical facts, contained in this press release, are forward-looking statements, including statements related to Strongbridge’s strategy, plans, and objectives of management for future operations. Forward-looking statements involve risks and uncertainties that could cause actual results to differ materially from those expressed in such statements. Additional risks and uncertainties relating to Strongbridge and its business can be found under the heading “Risk Factors” in Strongbridge’s Annual Report on Form 10-K for the year ended December 31, 2017 and subsequent filings with the SEC. These forward-looking statements are based on current expectations, estimates, forecasts and projections and are not guarantees of future performance or development and involve known and unknown risks, uncertainties and other factors. The forward-looking statements contained in this press release are made as of the date of this press release, and Strongbridge Biopharma does not assume any obligation to update any forward-looking statements except as required by applicable law.
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