Aviragen Therapeutics Completes Royalty Deal With HealthCare Royalty Partners for Proceeds of $20 Million
April 28 2016 - 11:46AM
Aviragen Therapeutics, Inc. (NASDAQ:AVIR) (formerly Biota
Pharmaceuticals, Inc.) a pharmaceutical company that is developing
the next generation of antivirals, today announced that it has
signed a definitive agreement to receive a cash payment of $20
million from HealthCare Royalty Partners in exchange for an
undisclosed portion of the Company’s royalty rights related to
Inavir®, an inhaled neuraminidase inhibitor that is approved in
Japan for the treatment and prevention of influenza. Aviragen plans
to use the non-dilutive proceeds to advance its pipeline of
direct-acting antivirals in development to treat infections that
have limited therapeutic options.
“This transaction allows us to partially monetize our royalty
stream from Inavir® for significant cash consideration, while also
retaining the opportunity to benefit from future upside potential
of the product,” said Mark P. Colonnese, Executive Vice President
and Chief Financial Officer of Aviragen. “These proceeds further
enhance our balance sheet as we continue to execute our strategic
plan that will deliver multiple Phase 2 data readouts in the second
half of 2016.”
“We have been following Inavir® for an extended period and have
seen consistently robust sales growth year-over-year as it has
established a leading market position among flu medications in
Japan,” commented Todd C. Davis, co-founder and Managing Partner of
HealthCare Royalty Partners. “This investment is consistent with
our strategy to invest in market-leading pharmaceutical products
marketed by strong commercial organizations with attractive
risk-reward profiles.”
FBR Capital Markets & Co. acted as exclusive financial
advisor to Aviragen Therapeutics, Inc. in connection with this
transaction.
About Aviragen Therapeutics, Inc.
Aviragen Therapeutics is focused on the discovery and
development of the next generation of direct-acting antivirals to
treat infections that have limited therapeutic options and affect a
significant number of patients globally. The Company has three
product candidates in active clinical development: These include
vapendavir, an oral treatment for human rhinovirus upper (HRV)
respiratory infections in moderate-to-severe asthmatics currently
being evaluated in the Phase 2b SPIRITUS trial; BTA585, an oral
fusion protein inhibitor that has received Fast Track designation
by the U.S. FDA, in Phase 2 development for the treatment and
prevention of respiratory syncytial virus (RSV) infections; and
BTA074, a topical antiviral treatment in Phase 2 development for
condyloma caused by human papillomavirus types 6 & 11. For
additional information about the Company, please visit
www.aviragentherapeutics.com.
About Inavir®
Since its launch in 2010, Inavir® (laninamivir octanoate) has
become the leading treatment for influenza in Japan. The product is
taken via a single inhaled dose, which can be more convenient than
other flu medications that require several days of dosing. Inavir®
is sold in Japan by Daiichi Sankyo and has been approved for both
treatment and prevention of the influenza A and influenza B
viruses.
About HealthCare Royalty Partners
HealthCare Royalty Partners (HCRP) is a global healthcare
investment firm focused on investing primarily in commercial stage
healthcare product assets. HCRP has raised over $3 billion in
committed capital and is headquartered in Stamford, CT. Over
the past decade, HCRP's senior professionals have completed more
than 60 healthcare investments totaling more than $2.6 billion of
capital. For more information, visit www.healthcareroyalty.com.
Forward-Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995
that involve known and unknown risks and uncertainties concerning
Aviragen Therapeutics’ business, operations and financial
performance. Any statements that are not of historical facts may be
deemed to be forward-looking statements, including the timing of
multiple Phase 2 data readouts. Various important factors could
cause actual results, performance, events or achievements to
materially differ from those expressed or implied by
forward-looking statements, including: the U.S. Food and Drug
Administration (FDA) or a similar regulatory body in another
country, a data safety monitoring board, or an institutional review
board delaying, limiting, suspending or terminating the clinical
development of any of the Company's product candidates at any time
for a lack of safety, tolerability, regulatory or manufacturing
issues, or any other reason whatsoever; the Company's ability to
secure, manage and retain qualified third-party clinical research
data management and contract manufacturing organizations upon which
it relies to assist in the design, development, implementation and
execution of the clinical development of all its product candidates
and those organizations’ ability to successfully execute their
contracted responsibilities; the Company’s ability to comply with
applicable government regulations in various countries and regions
in which we are conducting, or expect to conduct, clinical trials;
and other cautionary statements contained elsewhere in this press
release and in our Annual Report on Form 10-K, Quarterly Report on
Form 10-Q and our other reports filed with the Securities and
Exchange Commission. There may be events in the future that the
Company is unable to predict, or over which it has no control, and
the Company’s business, financial condition, results of operations
and prospects may change in the future. The Company may not update
these forward-looking statements more frequently than quarterly
unless it has an obligation under U.S. Federal securities laws to
do so.
Mark Colonnese
Executive Vice President and Chief Financial Officer
Aviragen Therapeutics, Inc.
(678) 221-3381
mcolonnese@aviragentherapeutics.com
Beth DelGiacco
Stern Investor Relations, Inc.
(212) 362-1200
beth@sternir.com
John McKenna
ICR for HealthCare Royalty Partners
203-682-8252
HCRPartners@icrinc.com
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