ARTICLE | Finance
Royal de-risking
Royalty ups stake in Fumapharm earn-out as Biogen's Tecfidera uncertainties resolve
January 13, 2014 8:00 AM UTC
With the last major uncertainty for Tecfidera dimethyl fumarate in the rearview mirror, Royalty Pharma felt comfortable buying a bigger chunk of the MS drug's royalty stream. The firm is shelling out $510 million in cash for a larger stake, and now has bet more than $1 billion on the drug's prospects.
Royalty is buying the stake from former shareholders of Fumapharm AG, who are eligible for sales milestones related to Tecfidera (BG-12) and psoriasis drug Fumaderm. The milestones are paid by Biogen Idec Inc. (NASDAQ:BIIB), which acquired Fumapharm in 2006...