PDL BioPharma, Inc.NASDAQ
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  • Tue, May 24, 4:47 PM
    • PDL BioPharma (NASDAQ:PDLI), through an equity investment in privately held Noden Pharma DAC, acquires Novartis' (NYSE:NVS) anti-hypertension meds Tekturna (aliskiren) and Tekturna HCT (aliskiren and hydrochlorothiazide) tablets in the U.S. The products are marketed as Rasilez and Rasilez HCT in the rest of the world.
    • Novartis, through an Asset Purchase Agreement with Noden, will receive an upfront payment of $110M, $89M on the first anniversary of the closing of the deal and up to $95M in milestones related to the achievement of sales targets and the date of the launch of a generic version of aliskiren.
    • PDLI's investment in Noden will eventually reach 88%. It expects to make equity contributions of $107M in the first year of the transaction, including $75M at closing and an additional $32M on the one-year anniversary of the closing.
    • Noden is expected to secure debt financing in conjunction with the PDLI investment. PDLI expects to invest no more than $145M, but it could potentially rise to $294M depending on the amount of debt raised by Noden. In other words, PDLI will make Novartis whole through additional equity investments in Noden if it cannot secure the expected amount of debt.
    • PDLI will consolidate Noden' financials into its own, which are expected to be immediately accretive.
    • The acquired products generated $154M in sales in 2015.
    • Update: On July 6, PDL announced that the equity investment had closed.
    | Tue, May 24, 4:47 PM | 1 Comment