BioCentury
ARTICLE | Finance

Ebb & Flow

January 16, 2006 8:00 AM UTC

Drug Royalty Corp. started operations in 1992 with the intent of going public and then issuing stock to fund its purchases of royalty interests in drugs. The IPO part happened, but the company subsequently had a rough time raising money - pulling in a total of only $16.3 million in two financings. Consequently, Drug Royalty was acquired by private equity firm Inwest Investmentsin 2002 and taken private.

After the acquisition, Drug Royalty announced three deals for royalty rights to a trio of drugs - two in 2003 and one in 2004. In total, the company spent $56.1 million to gain royalties on cold sore drug Abreva; on Cortrosyn, a diagnostic; and on Macugen for age-related macular degeneration (AMD). ...