-MPM Bio IV NVS Strategic Fund L.P. invests $10 million in Radius-
CAMBRIDGE, Mass., Sept. 17 /PRNewswire/ -- Radius Health ("Radius") announced today that it has granted Novartis (NYSE: NVS) an option to obtain an exclusive worldwide license (except Japan) to develop and commercialize all formulations of BA058, Radius' osteoporosis drug candidate. BA058 is a proprietary analog of hPTHrP (human parathyroid hormone-related protein) currently in Phase II development by Radius. In a separate but related agreement, the MPM Bio IV NVS Strategic Fund L.P. has purchased $10 million of Series C preferred stock of Radius.
In the event that Novartis exercises the option to license BA058, Novartis would assume the global clinical development, manufacturing, and marketing of BA058 and all associated costs. Radius would receive payments on the option exercise and on successful completion of certain development, regulatory, and commercial milestones. These payments together could total more than $500 million, part of which will be paid to Ipsen (Euronext: FR0010259150; IPN), from which Radius licensed BA058 in 2005. In addition, Radius would be eligible to receive royalties on product sales and has retained the option to co-commercialize BA058 in the United States. Additional terms were not disclosed.
"It was our stated intention to partner BA058 prior to commencing Phase III development, as this offers the best opportunity to maximize its value potential for Radius while expediting its development for the patients who need it," said C. Richard Lyttle, Ph.D., President and CEO of Radius. "Through this innovative option arrangement, we have put in place an early mechanism to partner BA058 with Novartis, a global leader in the field of osteoporosis."
"This major commitment by the MPM Bio IV NVS Strategic Fund L.P. reflects our belief in the potential of BA058 to address important unmet needs for osteoporosis patients in the near future, and in the attractive commercial potential of Radius," said Ansbert Gadicke, MD, General Partner of MPM Capital and General Partner of the MPM Bio IV NVS Strategic Fund L.P. "We look forward to following the progress of this exciting bone anabolic agent and to its potential late-stage development by Novartis."
PTHrP (parathyroid hormone-related protein) is a critical peptide for promoting new bone formation, with a distinct role from PTH (parathyroid hormone), which primarily regulates calcium homeostasis and bone resorption. BA058 is Radius' proprietary analog of hPTHrP currently in Phase II clinical trials for the treatment of osteoporosis in postmenopausal women. BA058 is designed to build bone without inducing hypercalcemia or significant resorption. Radius acquired exclusive worldwide rights (excluding Japan) to develop, manufacture, and distribute BA058 and its analogs from Ipsen in 2005.
About Radius (http://www.radiuspharm.com)
Radius is a leading company in the discovery and development of a new generation of drug therapies for osteoporosis and women's health. Radius has raised $91.5 million in private equity financing since its establishment in 2003 and is based in Cambridge, Massachusetts
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