Drug Royalty Corporation Announces Acquisition Regarding FluMist(R); $35 Million in Payments
TORONTO, July 9 /PRNewswire/ -- Drug Royalty LP 2 (DRC) announced today it has acquired the right to receive royalties on the sales of the vaccine FluMist(R) from the University of Michigan (U-M). Under the terms of the agreement, the inventors of some of the technology used to develop FluMist(R) and the University will receive up to $35 million.
Speaking on behalf of DRC, Paul Kirkconnell, Managing Director, said: "We are very pleased to be working with an institution like the University of Michigan to purchase a portion of their royalties on the sales of one of the most innovative flu vaccines in the world." Kirkconnell added, "With access to significant capital and a long track record in completing royalty transactions, we take pride in meeting the needs of research-based institutions such as the University of Michigan."
Ken Nisbet, the Executive Director of University of Michigan Tech Transfer adds, "This agreement with Drug Royalty demonstrates the tremendous potential of our FluMist technology to address a very real societal need, and we are pleased to be their partners. We are also proud that inventors and inventions from the University of Michigan have enabled the impressive efforts of our licensee MedImmune to bring this important vaccine to the marketplace."
About FluMist(R)
FluMist(R) is a live trivalent virus vaccine that uses an attenuated form of the influenza virus to stimulate a protective immune response in the body. FluMist(R)'s nasal mist delivery offers a new approach to influenza vaccination. FluMist was invented by University of Michigan emeritus professor of epidemiology Hunein "John" Maassab who began work on an influenza vaccine in the 1950s as a public health graduate student, and University of Michigan researcher Martha Louise Herlocher. When FluMist was approved by the FDA in 2003, Maassab said: "I feel in a sense that I have accomplished my life's dream. ... I spent all my lifetime developing this vaccine." In June 2003 the Food and Drug Administration ("FDA") approved the use of FluMist(R) for active immunization for the prevention of disease caused by influenza A and B viruses in healthy people aged 5 to 49 years old. The next generation of FluMist(R) was approved in January 2007 and will be launched in time for the 2007 / 2008 flu season.
About Drug Royalty Corporation, Inc. (DRC)
Drug Royalty Corporation ("DRC") is a privately held investment management company, focused on the healthcare industry, with over $1 billion under management. DRC currently manages two funds: the Royalty Monetization Fund and the Structured Finance Fund.
Its Royalty Monetization Fund acquires existing royalty streams at competitive rates from companies, institutions and inventors. DRC is a leader in monetizing royalties, having acquired over $700 million in royalty-based cash flows on commercialized products.
Its Structured Finance Fund will soon close with approximately $300 million in committed capital. This Fund provides predominantly non-dilutive financing for product acquisitions and launches, M & A, in-licensing, sales force expansion and general working capital purposes to companies within the healthcare industry. The Fund invests in cash flow monetization structures which can include debt and equity components, custom tailored to fit the needs of clients.
About the University of Michigan (U-M)
The University of Michigan operates one of the broadest and most well- respected University research operations in the world, investing over $800 million per year on research. Part of the University mission is to enable discoveries from research to reach the marketplace, where they can provide benefits and improve the quality of life for the general public. The University often partners with outside businesses to commercialize these discoveries. When these activities yield financial returns, a significant percentage is reinvested in continued University research. To learn more, contact the UM Office of Technology Transfer at 734.764.0614 or visit http://www.techtransfer.umich.edu.
Drug Royalty Corporation, Inc. (DRC)CONTACT: Paul Kirkconnell of Drug Royalty Corporation, Inc. (DRC),+1-416-863-1865 ext. 236, pk@drugroyalty.com