-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 l
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