BioCentury
ARTICLE | Finance

BG-12 deal keeps on giving

Calculating the upside in BG-12 earn-out: Royalty Pharma buys into MS sales

May 7, 2012 7:00 AM UTC

The former shareholders of Fumapharm AG could be looking forward to more than $2.5 billion in milestones if sales for multiple sclerosis treatment BG-12 from Biogen Idec Inc. live up to Wall Street expectations. Last week, Royalty Pharma bought its way into the earn-out by paying $761 million in cash to those shareholders for an undisclosed stake.

BG-12, an oral dimethyl fumarate that activates the NF-E2-related factor 2 (Nrf2) pathway, is under review in the U.S. and EU...