Ariad, PDL in Iclusig royalty deal

Ariad Pharmaceuticals Inc. (NASDAQ:ARIA) will receive $100 million from PDL BioPharma Inc. (NASDAQ:PDLI) in exchange for royalties on future sales of Iclusig ponatinib. The drug is approved in the U.S. and EU to treat acute lymphoblastic leukemia (ALL) and chronic myelogenous leukemia (CML).

PDL paid the first $50 million tranche Tuesday; Ariad is to receive the balance in one year. PDL will receive 2.5% of global Iclusig sales during the first year; 5.0% after the first year through 2018; and 6.5% from 2019 until PDL reaches a 10% rate of return (IRR), at which time royalty payments are to cease. ...