By Stephanie Gleason
Inspiration Biopharmaceuticals Inc. reached a deal to sell its
second development-stage hemophilia drug at auction Tuesday to
Cangene Corp. for $5.9 million in cash upfront plus royalties and
milestone payments worth $50 million.
Cangene expects the sale, which still requires bankruptcy-court
approval, to close by Feb. 15, it said in a news release.
This drug, known as IB1001, is in Phase 3 clinical trials and
hasn't received approval from the U.S. Food and Drug Administration
or the European Medicines Agency. Clinical trials for the drug had
been stalled when irregular protein levels were found, an issue
Inspiration said was fixed by changing the way the drug was being
manufactured. This was among the factors Inspiration said
contributed to its Chapter 11 filing.
Cangene will be taking over the trials and charged with
finishing the approvals processes with the FDA and the EMA.
Inspiration's bankruptcy estate will receive milestone payments
once the drug starts producing revenue for Cangene. The full $50
million would be paid out once drug sales reach $65 million in a
year in the U.S. and $75 million in Europe and Japan. The company
would also receive royalty payments of up to 25% of sales when the
drug reaches certain targets.
In addition to IB1001, Cangene purchased certain related assets
owned by Inspiration lender and investor Ipsen Pharma S.A.S.
Inspiration said it received multiple bids for the assets and
has named an offer from Kedrion Biotechnology Inc. as the backup
bid. The company is also seeking court permission to sell to
Kedrion if it can't complete the sale to Cangene.
A court hearing on the sale is scheduled for Wednesday.
IB1001 treats hemophilia B, a genetic blood-clotting disorder
that affects one in 25,000 male births a year, according to
Cangene. The drug is injected to help the blood coagulate.
Late last month, Inspiration sold another of its
development-stage hemophilia drugs to Baxter International Inc.
(BAX) for $50 million upfront and milestone payments that, if
achieved, would bring the total to $185 million plus royalties.
Inspiration Biopharmaceuticals specialized in the development of
hemophilia drugs and filed for Chapter 11 bankruptcy last October
to sell its assets amid a cash crunch.
Ipsen Pharma agreed to provide the company with $18.3 million in
bankruptcy financing. That loan was on top of $195 million in
secured loans and $37.5 million in other financing Inspiration owed
Ipsen, it said. The company also owes $12 million to unsecured
creditors.
Hemophilia is a blood-clotting disorder in which low levels of a
certain kind of protein keep the blood from coagulating. It puts
those affected at high risk for internal bleeding following surgery
or injury and is usually an inherited condition.
Inspiration was founded in 2006 by two men whose sons both have
hemophilia and who sought to expand available treatment
options.
Cangene is a Canadian biopharmaceutical company that develops
and manufactures treatments focusing on therapies that increase
immunities.
(Dow Jones Daily Bankruptcy Review covers news about distressed
companies and those under bankruptcy protection. Go to
http://dbr.dowjones.com)
Write to Stephanie Gleason at
stephanie.gleason@dowjones.com.
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