Nabi Biopharmaceuticals Closes Sale of PhosLo(R) to Fresenius Medical Care
Tuesday November 14, 4:01 pm ET
BOCA RATON, Fla., Nov. 14 /PRNewswire-FirstCall/ -- Nabi Biopharmaceuticals announced today that it has completed the previously announced sale of PhosLo® (calcium acetate) and the product's related assets to a US subsidiary of Fresenius Medical Care ("Fresenius") for consideration of up to $150 million in up front cash, milestone payments, and royalties on sales of a new product formulation under development.
Fresenius has paid Nabi Biopharmaceuticals $65 million in cash and will pay an additional $20 million upon the successful completion of certain milestones, $5 million of which will be paid within five business days of the closing. Fresenius has also acquired rights to a new product formulation currently under development, which Nabi expects will be submitted for licensure in the US during 2007. Following the successful launch of this new product formulation, Fresenius will pay Nabi Biopharmaceuticals royalties on sales of the new product formulation over a base amount for 10 years after the closing date until total consideration paid in the transaction reaches $150 million.
In connection with the sale, Fresenius has assumed the prosecution of the Roxane patent litigation. Additionally, a number of Nabi Biopharmaceuticals' sales and marketing staff will move with PhosLo to Fresenius' team to continue to promote and market the product, and Nabi Biopharmaceuticals will maintain an appropriately-sized sales force to meet the sales needs of the company's other products.
Thomas H. McLain, chairman, chief executive officer and president, Nabi Biopharmaceuticals, commented, "The PhosLo sale demonstrates our commitment to building value for all Nabi Biopharmaceuticals shareholders. While we believe in the value of PhosLo, the product was no longer strategically aligned with our broader commercialization efforts. The sale of this product strengthens our financial position and demonstrates our commitment to our core goal of optimizing the value from our operations by focusing on our most promising assets. Additionally, Nabi Biopharmaceuticals, in consultation with its outside advisors, is continuing to explore the full range of strategic alternatives available to the company to further enhance shareholder value."
PhosLo® is administered orally, and when given with food, it combines with dietary phosphate to form insoluble calcium phosphate complexes that are eliminated from the body, thereby reducing phosphorus absorption, helping to prevent excess blood phosphorus levels. Patients should have serum calcium levels closely monitored and their dose of PhosLo adjusted or terminated to bring levels to normal. PhosLo is contraindicated in patients with hypercalcemia. No other calcium supplements should be given concurrently with PhosLo. PhosLo is well tolerated. Nausea, hypercalcemia, and pruritus (itching) have occasionally been reported during PhosLo therapy.
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop and market products that fight serious medical conditions. The company has two products on the market today: Nabi-HB® [Hepatitis B Immune Globulin (Human)], and Aloprim(TM) (allopurinol sodium) for Injection. Nabi Biopharmaceuticals is focused on developing products that address unmet medical needs and offer commercial opportunities in our core business areas: Hepatitis and transplant, Gram-positive bacterial infections and nicotine addiction.
Source: Nabi Biopharmaceuticals
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