Cadence Pharmaceuticals, Inc. Announces Acquisition Of Second Phase III Product And $60.8 Million Financing
SAN DIEGO, Feb. 22 /PRNewswire/ -- Cadence Pharmaceuticals, Inc., a hospital-focused biopharmaceutical company, today announced that it has reached agreement to acquire the development and commercialization rights to an intravenous formulation of acetaminophen ("IV APAP") in the United States and Canada from Bristol-Myers Squibb Company. Concurrently, Cadence has received equity financing commitments of $53.8 million from leading life science venture capital investors to fund development of IV APAP and make an up-front payment to Bristol-Myers Squibb. Closing of the transaction is subject to Hart-Scott Rodino clearance. Cadence has also completed a debt financing agreement providing for an additional $7.0 million.
Under the terms of the agreement, Cadence will receive an exclusive license to develop and commercialize IV APAP in the United States and Canada. In return, Bristol-Myers Squibb will receive an up-front payment, additional payments based on the achievement of certain milestones, and royalty payments based on net sales.
"We are thrilled to reach agreement with Bristol-Myers Squibb and view this transaction as a transformational event for the company," remarked Ted Schroeder, President and CEO of Cadence. "The substantial amount of clinical safety and efficacy data and the continuing commercial success of the product in Europe make IV APAP an outstanding acquisition for Cadence. Further, IV APAP is an ideal fit with our current Phase III product, omiganan, as well as our strategy to build a pipeline of high value late-stage products utilized primarily in the hospital setting. We look forward to promptly initiating the remaining clinical trials to seek FDA approval of IV APAP."
"The acute pain management community has long-awaited an alternative to currently available intravenous analgesics which are frequently associated with a variety of unwanted side-effects," stated Raymond S. Sinatra, M.D., Ph.D., Professor of Anesthesiology and Director of Inpatient Pain Management at Yale University. "IV APAP has the potential to meet this significant unmet medical need, particularly in the post-operative setting."
The $53.8 million equity financing is led by Frazier Healthcare Ventures. The round also includes new investors Versant Ventures and Technology Partners with significant participation from existing investors, including Domain Associates, ProQuest Investments, BB Biotech Ventures, CDIB BioScience Venture Management, and private investors. In connection with the financing, Alan Frazier, Managing Partner of Frazier Healthcare Ventures, and Brian Atwood, Managing Director of Versant Ventures, will join the Cadence board.
"With two well-characterized, high value Phase III products targeted toward a focused market, Cadence is uniquely positioned among private companies," commented Alan Frazier. "The Cadence management team's demonstrated track record of building successful hospital-focused organizations was a key factor in our decision to invest in Cadence. We are excited to work with the team and the rest of the investor syndicate to continue building a very significant hospital-focused company."
About IV APAP
IV APAP is a proprietary intravenous formulation of acetaminophen. Although no intravenous formulation has ever been available in the United States, other formulations of acetaminophen have been available for over 50 years. Acetaminophen is the most widely used medication for the treatment of pain and fever. IV APAP has been marketed in Europe since 2001. Prior to IV APAP, an intravenous formulation of the acetaminophen prodrug, propacetamol, was available in Europe since 1984.
About Cadence Pharmaceuticals, Inc.
Cadence Pharmaceuticals, Inc. is a San Diego-based biopharmaceutical company focused on the development and commercialization of therapeutics utilized primarily in the hospital setting. The business of Cadence is driven by in-licensing and acquisition of late-stage development compounds and commercial-stage drugs.
For more information, contact Ted Schroeder, President and CEO, at 858-436-1400, or visit our website at www.cadencepharm.com.
Cadence cautions you that statements included in this press release that are not a description of historical facts may be forward-looking statements. The inclusion of forward-looking statements should not be regarded as a representation by Cadence that any of its plans will be achieved. Actual results may differ materially from those set forth in this release due to the risks and uncertainties inherent in Cadence's business including, without limitation, statements about: the progress and timing of its clinical trials; difficulties or delays in development, testing, obtaining regulatory approval, producing and marketing its products; unexpected adverse side effects or inadequate therapeutic efficacy of its products that could delay or prevent product development or commercialization, or that could result in recalls or product liability claims; the scope and validity of patent protection for its products; competition from other pharmaceutical or biotechnology companies; and its ability to obtain additional financing to support its operations. All forward-looking statements are qualified in their entirety by this cautionary statement and Cadence undertakes no obligation to revise or update this news release to reflect events or circumstances after the date hereof.
Cadence Pharmaceuticals, Inc.CONTACT: Ted Schroeder, President and CEO of Cadence Pharmaceuticals,Inc., +1-858-436-1400
Web site: http://www.cadencepharm.com/