INPDL BioPharma announced that it has priced a $300 million securitization transaction intended to monetize certain of its antibody humanization patents and royalties.
Upon closing of the transaction, which is expected to occur on Nov. 2, BioPharma will sell to QHP Royalty Sub, a newly-formed wholly-owned subsidiary of BioPharma, certain rights under its non-exclusive license agreements with Genentech, a wholly-owned subsidiary of Roche Holding.
This includes the right to receive 60% of the royalties from sales of Avastin® (Bevacizumab), Herceptin® (Trastuzumab), Lucentis® (Ranibizumab) and Xolair® (Omalizumab) and from sales of future products, if any. QHP will then issue $300 million in aggregate principal amount of its QHP PhaRMA(SM) senior secured notes due 2015 in a non-registered offering pursuant to Rule 144A and Regulation S. The notes will bear an interest rate of 10.25%.
BioPharma intends to use a sizable portion of the net offering proceeds from the securitization transaction to pay a special cash dividend to stockholders.
The total amount of the special dividend, together with the record and payment dates, will be decided by the company's board of directors at its upcoming meeting on Nov. 11 and will be announced the following day.