This was a royalty transaction which PDL funded $100 million in exchange for a 2.5% royalty on worldwide sales on Iclusig, a cancer medicine for the treatment of adult patients with chronic myeloid leukemia, through July 2016, increasing to 5% through the end of 2018 and increasing again to 6.5% thereafter.
When this agreement was entered into in July 28, 2015, it contained a number of other provisions allowing ARIAD to draw up to a total of $200 million. These provisions were amended and ARIAD was funded $50 million at signing and $50 million one year later on July 28, 2016.
In January 2017, Takeda Pharmaceutical Company Limited (“Takeda”) announced that it had entered into a definitive agreement to acquire ARIAD. The acquisition was consummated on February, 16, 2017 and PDL exercised its put option on the same day, which resulted in an obligation by Takeda to pay the Company a 1.2x multiple of the $100.0 million funded by the PDL under the ARIAD Royalty Agreement, less royalty payments already received by the Company.
On March 30, 2017, Takeda fulfilled its obligations under the put option and paid the Company the repurchase price of $108.2 million for the royalty rights under the ARIAD Royalty Agreement. In total, PDL received $120 million from its investment which resulted in a pre-tax return of 17.5%.
Iclusig is approved for the treatment of chronic myeloid leukemia and Philadelphia chromosome–positive acute lymphoblastic leukemia.
This was a debt transaction for $20 million entered into on April 18, 2013. Avinger used the proceeds from the debt facility to support the commercialization of its approved luminvascular catheter used to clear total blockages in vessels in the leg and to support development of its then unapproved luminvascular atherectomy device used to clear partial blockages in vessels in the leg.
The interest rate on the monies advanced was 12%. In addition, PDL received a low, single digit royalty on Avinger’s net revenues through April 2018. On September 22, 2015, Avinger prepaid the debt in whole, including prepayment fees, for $21.4 million. The effect of this prepayment was to reduce the low, single digit royalty on Avinger’s net sales by 50% effective as October 2015 and subject to certain minimum payments. The pre-tax return on this transaction is 19.1%.
This transaction was a hybrid royalty/debt transaction for $20.8 million entered into in October 2012 and secured by the assets of AxoGen. PDL received a combination of interest payments and royalties on sales of AxoGen products. In August 2013, PDL purchased 1,166,666 shares of AxoGen common stock at $3.00 per share.
Direct Flow Medical
This was a debt transaction for a total of $58 million that was entered into on November 5, 2013. Direct Flow Medical had a transcatheter aortic valve system to treat aortic stenosis with minimal risk of aortic regurgitation, a significant clinical complication, and was developing a transcatheter mitral valve system.
This was a debt transaction for $40 million entered into on October 31, 2013 with $25 million advanced at signing and a second tranche of $15 million advanced on May 27, 2014 upon US approval of Durata’s antibiotic, dalbavancin.
This was a debt transaction for $150 million that was entered into on April 1, 2014 with secured notes bearing interest at 13% per annum, paid quarterly in arrears on principal outstanding.
On September 21, 2017, PDL entered into a note purchase agreement with MAM-Kangaroo Lender, LLC, pursuant to which PDL sold its entire interest in the secured notes due 2029 issued by Accel 300, LLC, which is a wholly-owned subsidiary of kaléo, Inc. and pursuant to the indenture, dated as of April 1, 2014, by and between Accel 300 and a trustee of the notes. Pursuant to the note purchase agreement, MAM-Kangaroo Lender paid PDL an amount equal to 100% of the then outstanding principal and accrued interest under the notes plus a premium of 1% of such amount, for an aggregate cash purchase price of $141.7 million, subject to an 18-month escrow holdback of approximately 1% of the aggregate cash purchase price against certain potential contingencies.
The pre-tax return on this transaction was 13.8 %.
This transaction was a debt facility for $55 million entered into in July 2012 and secured by the assets of Merus Labs. Merus Labs used the funds to support the commercialization of Enablex, a treatment for overactive bladder, and Vancocin,
This was a debt transaction entered into on February 14, 2014 with $50 million advanced as of signing and an additional $4 million under a modification of the original loan agreement in October 2015.