Rodman & Renshaw Capital Group, Inc. (NASDAQ: RODM) announced today that its affiliate, Aceras BioMedical LLC (Aceras), has sold Huxley Pharmaceuticals Inc. (Huxley), a portfolio company, to BioMarin Pharmaceutical Inc. (NASDAQ: BMRN). Huxley was established by Aceras in August 2008 with a focus on developing therapeutic products for rare diseases of the nervous system.
Under the terms of the agreement, BioMarin paid Huxley stockholders $15.0 million. An additional $7.5 million is payable upon the achievement of regulatory milestones. Further, Huxley stockholders may also receive up to an additional $36 million in milestone payments if certain annual, cumulative sales and U.S. development milestones are met. Aceras owned 95% of Huxley’s stock at the time of the transaction.
“Huxley’s focus on rare diseases of the nervous system made BioMarin a natural fit for Huxley. With its expertise in ultra-orphan drug development, we believe patients will be well served by BioMarin’s acquisition of Huxley,” said Dan DiPietro, President of Huxley and Partner in Aceras.
“We believe that the sale of Huxley demonstrates the potential of the business strategy behind Rodman’s joint venture with Aceras, and we are pleased that Aceras has so rapidly executed on its business model of identifying innovative pharmaceutical assets, creating value through its internal and external development capabilities, and pursuing strategic exits and liquidity,” said Edward Rubin, CEO of Rodman & Renshaw.