Vertex sells HIV drug royalty rights for $160M
Boston Business Journal - Boston Business Journal
Vertex Pharmaceuticals Inc. has sold the rights to future royalties for two HIV drugs it helped develop for $160 million in cash.
The Cambridge, Mass., company sold to an unnamed investment entity rights to future royalties for both Lexiva and Agenerase.
Vertex closed the deal under a 1993 license agreement it inked with GlaxoSmithKline PLC, which has been marketing the HIV drugs and paid Vertex royalties that started at 15 percent of sales.
Vertex will use the money to help invest in key programs and future business initiatives.
Vertex brought in just over $34 million in royalty revenue from GSK in 2007 for its HIV treatments.
The investment entity that purchased the future royalty stream declined to be identified.
Vertex announced earlier this year that it would sell stock and convertible senior subordinated notes to raise up to $405 million to help support
development of Telaprevir, its new treatment for hepatitis C.
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