CARLSBAD, Calif., Oct. 18 /PRNewswire-FirstCall/ -- Isis Pharmaceuticals, Inc. announced today it has received $7 million from Drug Royalty USA, Inc. (DRC) as partial payment for a portion of Isis' royalty rights in Macugen(R). In December 2004, Isis sold a portion of its royalty rights in Macugen to DRC in exchange for $24 million to be paid over three years.
"Licensing our patents to Eyetech and then accelerating a portion of the value anticipated from our royalties on Macugen, demonstrate how we are capitalizing on the value of our extensive patent estate," said B. Lynne Parshall, Executive Vice President and Chief Financial Officer of Isis Pharmaceuticals. "Patents on our RNA-based inventions have generated over $75 million, providing additional resources for the continued development of our exciting antisense drugs. We look forward to continuing to benefit from the commercial success of Macugen."
In 2001, Isis licensed specific patents to Eyetech Pharmaceuticals, Inc. necessary for the development, manufacturing and commercialization of Macugen. The Eyetech license provides for royalties on sales of Macugen and milestone payments upon the approval of Macugen for new therapeutic indications. In 2004, Isis sold a portion of its Macugen royalty rights to DRC in exchange for $24 million, to be paid over three years. Under Isis' agreement with DRC, through 2009, DRC will receive all royalties on the first $500 million of annual sales of Macugen. Isis will receive 50 percent of royalties on annual sales between $500 million and up to $1 billion, and 90 percent of royalties on annual sales in excess of $1 billion. After 2009, Isis will receive 100 percent of royalties on annual sales of Macugen.
According to Eyetech, Macugen is indicated in the United States and Brazil for the treatment of neovascular age-related macular degeneration (neovascular AMD) and in Canada for the treatment of subfoveal choroidal neovascularization (CNV) secondary to age-related macular degeneration. In September 2005, the Committee for Medicinal Products for Human Use (CHMP), the scientific committee of the European Medicines Evaluation Agency (EMEA), issued a positive opinion recommending approval of Macugen for the treatment of neovascular AMD in Europe. Macugen applications have also been filed in twelve additional countries.
Isis has an extensive intellectual property estate of more than 1,500 issued patents that it owns or exclusively licenses covering RNA-based drug discovery and development. Isis' patent estate covers fundamental oligonucleotide chemistries; antisense drug discovery (multiple mechanisms); antisense therapeutics; manufacturing; formulations, and delivery of oligonucleotide therapeutics, as well as Ibis' RNA technology for the identification of infectious organisms.
About Age-related macular degeneration (AMD)
Age-related macular degeneration (AMD) is a chronic, progressive disease of the macula that results in the loss of central vision. According to the Macula Vision Research Foundation, as many as 15 million people in the United States suffer from some form of AMD, with more than 1.6 million experiencing the active blood vessel growth and blood vessel leakage associated with neovascular AMD or wet AMD. In addition, AMD Alliance International reports that approximately 500,000 new cases of neovascular AMD arise each year world- wide, including approximately 200,000 new cases of neovascular AMD each year in North America.
ABOUT ISIS PHARMACEUTICALS, INC.
Isis Pharmaceuticals, Inc. is exploiting its expertise in RNA to discover and develop novel drugs for its product pipeline and for its partners. The Company has successfully commercialized the world's first antisense drug and has 12 antisense drugs in development to treat metabolic, cardiovascular and inflammatory diseases, and cancer. In its Ibis division, Isis is developing and commercializing the TIGER biosensor system, a revolutionary system to identify infectious organisms. As an innovator in RNA-based drug discovery and development, Isis is the owner or exclusive licensee of more than 1,500 issued patents worldwide. Additional information about Isis is available at www.isispharm.com.
This press release includes forward-looking statements concerning Isis Pharmaceuticals, the Company's intellectual property position and potential future payments to the Company related to the success of Macugen. Any statement describing Isis' goals, expectations, intentions or beliefs is a forward-looking statement and should be considered an at-risk statement, including those statements that are described as Isis' goals. Such statements are subject to certain risks and uncertainties, particularly those inherent in the process of discovering, developing, and commercializing drugs that are safe and effective for use as human therapeutics, and in the endeavor of building a business around such products. Isis' forward-looking statements also involve assumptions that, if they never materialize or prove correct, could cause its results to differ materially from those expressed or implied by such forward-looking statements. Although Isis' forward-looking statements reflect the good faith judgment of its management, these statements are based only on facts and factors currently known by Isis. As a result, you are cautioned not to rely on these forward-looking statements. These and other risks concerning Isis' programs are described in additional detail in Isis' annual report on Form 10-K for the year ended December 31, 2004, and its quarterly report on Form 10-Q for the quarter ended June 30, 2005, which are on file with the SEC. Copies of these and other documents are available from the Company.
Macugen(R) is a registered trademark of Eyetech Pharmaceuticals, Inc.
Isis Pharmaceuticals, Inc.