Former Swiss shareholders of Fumapharm get USD761 million in cash

The Fumapharm earn-out by Royalty Pharma primarily represents an indirect interest in Biogen Idec’s BG-12 (dimethyl fumarate), an oral therapeutic candidate for the treatment of relapsing-remitting multiple sclerosis (RRMS), which was initially developed by the Swiss company. The earn-out also includes an interest in Fumaderm, a therapeutic approved in Germany for the treatment of moderate to severe plaque psoriasis. Fumapharm was bought by Biogen Idec in 2006 for USD220 million. With the earn-out the former shareholders will get USD761 on top.

Last week, Biogen Idec presented positive data on BG-12 from the Phase 3 CONFIRM trial, the second positive Phase 3 study of BG-12 in the treatment of RRMS, at the 64th Annual Meeting of the American Academy of Neurology (AAN). The BG-12 clinical development program now includes robust data sets from two global, placebo-controlled Phase 3 pivotal studies with more than 2,600 RRMS patients. In February 2012, Biogen submitted a New Drug Application to the U.S. Food and Drug Administration for marketing approval of BG-12 and, in March 2012, Biogen submitted a Marketing Authorisation Application for BG-12 to the European Medicines Agency.

“We are pleased to acquire an interest in one of the most promising new therapies addressing the needs of patients with relapsing-remitting multiple sclerosis,” said Pablo Legorreta, Chief Executive Officer of Royalty Pharma. “The combination of efficacy, safety and tolerability of BG-12 shown in the DEFINE and CONFIRM Phase 3 trials, the oral dosing regimen and Biogen Idec’s deep commitment to this disease category, leads us to believe that BG-12 has blockbuster potential.”

The management and shareholders of Fumapharm AG deserve credit for identifying this breakthrough therapy that has the potential to improve the lives of thousands of patients with relapsing-remitting multiple sclerosis,” Mr. Legorreta added. “We are also pleased to have been able to offer the former Fumapharm shareholders an opportunity to realize immediate liquidity for a portion of their interest in the Fumapharm earn-out, and to mitigate the risks associated with owning such a concentrated financial asset.”