Navidea agrees deal worth $310 million with Cardinal
pharmafile | November 24, 2016 | News story | Business Services, Manufacturing and Production, Medical Communications, Research and Development, Sales and Marketing | Cardinal, Navidea, Navidea biopharmaceutical
Navidea Biopharmaceuticals, a developer of immunodiagnostic agents and immunotherapeutics, has announced that they will enter into a definitive asset purchase agreement with Cardinal Health potentially worth up to $310 million.
The deal sees Cardinal Health purchase Navidea’s Lymphoseek product which is used in lymphatic mapping, in lymph node biopsy and in the diagnosis of metastatic spread to lymph nodes for the staging of cancer in North America.
Navidea will receive $80 million on the closing of the deal, with a further $230 million depending upon certain milestones through to 2026 of which $20.1 million is guaranteed. As part of the deal, Cardinal will license a portion of the intellectual property back to Navidea. This will allow Navidea to develop and sell new immunodiagnostic and immunotherapeutic products in North America.
Michael M. Goldberg, president and CEO of Navidea Biopharmaceuticals said in a statement: “This transaction is very exciting for Navidea and its shareholders as it will enable the company to extinguish the CRG debt and to focus the company on several attractive development efforts. With our proven delivery system and broad pipeline of clinical and preclinical products addressing very large commercial opportunities, we intend to build a world-class and highly focused development effort.”
He continued, “We will leverage our team and financial resources by continuing to seek non-dilutive grant funding and partnerships with leading academic and commercial entities. We have successfully completed two grant-funded clinical studies in Rheumatoid Arthritis and Cardiovascular disease with academic collaborators and have continued our progress with other successful preclinical studies with candidates from our proprietary Macrophage Therapeutics pipeline.”
The transaction is predicted to close in the first quarter of 2017.
