Leiden, The Netherlands, 8 December 2016: Pharming Group N.V. (“Pharming” or “the Company”) (EURONEXT: PHARM) announces today that it has completed a definitive agreement to acquire all North American commercialisation rights for its own product, RUCONEST® (recombinant human C1 esterase inhibitor), including all rights in the US, Mexico and Canada, from certain subsidiaries of Valeant Pharmaceuticals International, Inc. (“Valeant”) (NYSE/TSX: VRX). RUCONEST® is an orphan drug designated therapy developed by Pharming, already approved for the treatment of acute Hereditary Angioedema (“HAE”) attacks in patients in the US and EU. This transaction will accelerate Pharming’s development into a profitable specialty pharmaceutical company with its own independent commercial infrastructure, which will form the foundation for future growth.
- Transformational acquisition of commercial rights to Pharming’s own product RUCONEST®
- Immediate and substantial positive impact on Pharming’s operational results and near-term profitability; annualised run rate of sales, increased from US$35 million in Q3 2016 to more than US$40 million, based on the average of the most recent two months of sales (October and November).
- US$125 million deal value, with an upfront fee paid to Valeant of US$60 million, and future self-funding sales milestone payments up to a further US$65 million in total
- Funding through a combination of new equity, straight debt and new convertible bonds of €104 million before costs.
- Cash position after closing of deal and payment of all transaction costs strengthenend to €34.3 million
- Additional new investment going into RUCONEST® sales force, medical science liaison personnel and marketing activities in the US and Europe to accelerate sales growth in both the US and Europe