Danish speciality pharmaceutical company LifeCycle Pharma has sold its rights to future royalty payments and potential milestone payments related to the North American market of its drug Fenoglide to Cowen Healthcare Royalty Partners (CHRP), a US private equity firm. LifeCycle Pharma will receive up to USD 105m, including an upfront payment of USD 29m. Fenoglide is a cholesterol lowering drug for the treatment of hyperlipidemia and hypertriglyceridemia, and LifeCycle Pharma's first commercialised product.
Todd Davis, founder and managing director of CHRP says in a press release: "The fenofibrate market continues to grow at a steady pace, and we believe Fenoglide, as the lowest dose product available in the US to reduce cholesterol levels, is well positioned for long-term growth. Our investment in Fenoglide reflects a growing need for companies to have more financial flexibility to fund development and commercialisation activities and we were able to accomplish that with this significant royalty monetization."
According to the American Heart Association (AHA), more than 140 million American adults have elevated blood cholesterol levels. Sales of fenofibrate, of which Fenoglide is a variant, have increased significantly in the last few years. In 2007, fenofibrate sales totalled USD 1.9bn worldwide, up 12% on the previous year. In North America alone, fenofibrate sales totalled USD 1.5bn in 2007.
LifeCycle Pharma is headquartered in Hørsholm north of Copenhagen and has a fully owned subsidiary in New York, USA. The company was founded in 2002 as a spin-off from Danish pharmaceutical company Lundbeck, and is listed on the OMX Nordic Exchange Copenhagen. LifeCycle Pharma utilizes its proprietary Meltdose technology to improve the bioavailability of known and established compounds so that patients can absorb them more effectively. The company focuses on cardiovascular indications and organ transplantation in particular.