Medigene transfers 2% Eligard® royalty to US-based investor Cowen Royalty
Medigene's cash position increases by USD 17.68 million
2012 guidance for revenue and EBITDA remains unchanged
Martinsried/Munich, June 7, 2012.The biotech company Medigene AG (Frankfurt: MDG, Prime Standard) today announced that it has transferred its two percent (2%) royalty share of Eligard® European net sales to US-based investor, Cowen Healthcare Royalty Partners II, L.P. ("Cowen Royalty"),for a cash payment of USD 17.68 million (appr. EUR 14.1 million). Medigene plans to invest these proceeds in further strengthening the company's pipeline.
According to IFRS guidelines, Medigene will account for the proceeds of this transaction as a financial liability. The related income will be recognized pro rata over the period of the Eligard® patent term of approximately 10 years. Therefore, Medigene's revenue and EBITDA guidance for 2012 remains unchanged.
In 2010, Medigene monetized a portion of their royalty rights to Eligard®, a hormone compound for the treatment of advanced, hormone-dependent prostate cancer, to the company's marketing partner, Astellas Pharma Europe Ltd., for EUR 25 million and retained ongoing royalties amounting to two percent of Eligard® net sales.
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