La Jolla Pharma Gets Lupus Lifeline from BioMarin (LJPC, BMRN)
La Jolla Pharmaceutical Company (NASDAQ: LJPC) may have just gotten a much needed lifeline after the close. The company has signed a development and commercialization pact with BioMarin Pharmaceutical Inc. (NASDAQ: BMRN) for its Riquent®, La Jolla’s investigational drug for lupus nephritis. Riquent is currently being evaluated in a Phase 3 clinical study for Lupus Nephritis, a condition which is currently considered a high unmet need and orphan disease.
If you have followed La Jolla Pharmaceuticals very long, you will likely know how dire their situation was previously looking. Under the terms of the agreement, BioMarin will receive a co-exclusive license to develop and commercialize Riquent. The terms state that La Jolla could receive up to $289 million in cash, which would come through milestones and equity purchases by BioMarin.
Specific payments include $15 million upfront, and can be up to approximately $92.5 million related to clinical milestones. This is via $55 million for regulatory milestones, and up to approximately $126 million for achieving specified annual net sales milestones beginning at $250 million in sales.
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