NicOx to Acquire NO-Donating Patents From Nitromed
April 27, 2009
France-based NicOx has agreed to purchase US-based Nitromed's unlicensed patent estate covering nitric oxide-donating compounds.
Under the terms of the agreement, NicOx will pay Nitromed E2 million at signature and a further E4 million upon NicOx fulfilling certain future business criteria. NicOx is not acquiring any rights to BiDil (isosorbide dinitrate/hydralazine hydrochloride).
Nitromed said that it has halted its drug discovery research programs in March 2006, due to financial considerations. This research had previously been focused on synthesizing and patenting new chemical entities combining an existing, marketed medicine with a nitric oxide donor.
NicOx said that it is acquiring the vast majority of the resulting patents, which represent Nitromed's unlicensed intellectual property portfolio on nitric oxide- donating compounds. This includes numerous composition of matter and treatment patents in the US and other important pharmaceutical markets, many of which have expiration dates later than 2020.
These include a large number with potential uses for inflammatory and cardiometabolic disorders, which are core areas of focus for NicOx's internal R&D. NicOx is also taking royalty free licenses to additional patents under this agreement, which it considers strategically important.
Ennio Ongini, vice president of research at NicOx, said: "Between them, NicOx and Nitromed filed the vast majority of the patent applications on nitric oxide donation and today's agreement consolidates NicOx's leading position in this area. Taking complete ownership of these patents will allow NicOx to become even more versatile in its application of this complex technology and expand the areas where we can potentially initiate new internal research programs."
A service of YellowBrix, Inc.
Monday, April 27, 2009
Deerfield buyout of Nitromed finalized
By Marc Songini
Healthcare investment company Deerfield Management has closed its acquisition of the Lexington-based based drug maker NitroMed Inc.
NitroMed is the maker of BiDil (isosorbide dinitrate/hydralazine hydrochloride), an orally taken medicine to treat heart failure in black patients in the United States. In January, NitroMed agreed to be acquired by Deerfield Management, which already owned 12 percent of the company. The deal called for Deerfield Management to pay NitroMed stockholders 80 cents per share, or about $36 million.
The agreement superseded two prior deals NitroMed had ongoing. NitroMed had previously agreed that JHP Pharmaceuticals LLC would buy its BiDil and BiDil XR drug business. In November, NitroMed had also announced a merger agreement with Cambridge biotech firm Archemix Corp. To terminate the two prior deals, NitroMed agreed to pay $900,000 to JHP and $1.5 million to Archemix.
According to the terms of the Deerfield Management transaction, NitroMed common stock is automatically converted into the right to receive 85.85 cents in cash, without interest. Additionally, NitroMed requested that Nasdaq remove its stock from listing on the Nasdaq Global Market.
Last week, NitroMed also announced it was selling pieces of its nitric oxide-based technology platform to France-based NicOx S.A. for 2 million Euros, or $2.6 million U.S. The terms require NicOx to make an upfront payment to NitroMed as well as an additional contingent payment to be made after certain milestone events. The transaction will wrap after NitroMed receives the upfront payment.
Thursday, April 23, 2009
NitroMed’s tech sale nets $2.6M
Drug maker NitroMed Inc. is selling pieces of its nitric oxide-based technology platform to France-based NicOx S.A. for 2 million Euros, or $2.6 million U.S.
Lexington-based NitroMed (Nasdaq:NTMD) announced these “definitive agreements” this week. The terms require NicOx to make an upfront payment to NitroMed and an additional contingent payment to be made after certain milestone events. The transaction will wrap after NitroMed receives the upfront payment.
NitroMed last January also announced a merger with Deerfield Management. If the upfront payment from NicOX is made prior to the closing of the merger, the cash will be counted as part of the money to be paid to NitroMed’s stockholders. The payment will mean an estimated 86 cents per share in cash.
Moreover, NitroMed also announced that at the April 22 stockholder meeting, a majority of NitroMed’s stockholders approved the merger with Deerfield Management. The merger is expected to close as soon as possible.
The NitroMed merger story is a long and complex one. NitroMed created BiDil, a heart failure pill designed specifically for African-Americans. In January 2008, NitroMed let most of its staff go and ceased marketing efforts for BiDil. The NitroMed agreement to be bought by Deerfield Management ended previous acquisition agreements with Archemix Corp. and JHP Pharmaceuticals LLC. Deerfield Management already owned 12 percent of NitroMed and agreed to pay NitroMed stockholders 80 cents per share.
To terminate the two prior agreements, NitroMed agreed to pay about $900,000 to JHP and $1.5 million to Archemix