LCP could earn another $76 million in sales milestones.
LifeCycle Pharma (LCP) received $29 million from Cowen Healthcare Royalty Partners (CHRP) in exchange for its North American royalty stream related to cholesterol-lowering medication Fenoglide™. According to the terms of the agreement, LCP will receive an additional $76 million if certain sales levels are achieved.
The deal, effective July 1, entitles CHRP all future royalty and potential milestone payments related to the drug in North America due to LCP from Sciele Pharma, the marketer.
Fenoglide is approved for the treatment of hyperlipidemia and hypertriglyceridemia. It has been on the U.S. market since February and is marketed by Sciele Pharma.
“The fenofibrate market continues to grow at a steady pace and we believe Fenoglide, as the lowest-dose product available in the U.S. to reduce cholesterol levels, is well positioned for long-term growth,” says Todd Davis, cofounder and managing director of CHRP.
With this agreement, LCP expects to the firm’s operating loss will be in the range of DKK 220 million to DKK 250 million, or roughly between $43 million and $50 million. Net loss is anticipated to be between approximately $41 million and $48 million. In May, LCP was expecting operating loss to be at least $7.97 million higher.