NPS Pharmaceuticals sells royalty rights from sales of REGPARA to DRI Capital's fund

NPS PharmaceuticalsMar 3 2010

NPS Pharmaceuticals, Inc. (Nasdaq: NPSP) today announced the sale of its royalty rights from sales of REGPARA^® (cinacalcet HCl) to a fund managed by DRI Capital, Inc., (Fund) for $38.4 million. Royalties in excess of cumulative royalties of $96 million or 2.5 times the upfront purchase price have been retained by NPS.

“This transaction allows us to access significant capital in a manner that is non-dilutive to our shareholders”

“This transaction allows us to access significant capital in a manner that is non-dilutive to our shareholders,” said Francois Nader, M.D., president and chief executive officer of NPS Pharmaceuticals. “The proceeds from this sale will support our two registration programs, teduglutide in short bowel syndrome and NPSP558 in hypoparathyroidism.”

NPS licensed cinacalcet HCl to Kyowa Kirin Pharma, a wholly-owned subsidiary of Kyowa Kirin Holdings, for the drug’s development and commercial sale in China, Japan, North and South Korea, and Taiwan. Following review by the Pharmaceuticals and Medical Devices Agency (PMDA), Japan’s Ministry of Health, Labor and Welfare (MHLW) approved the drug for the treatment of patients with secondary hyperparathyroidism during dialysis therapy.

Kyowa Kirin began commercializing cinacalcet HCl in Japan as REGPARA^® during the first quarter of 2008.

Under the agreement, Fund is entitled to receive royalty payments related to net sales of REGPARA occurring on or after July 1, 2009. NPS has received approximately $3.5 million in cumulative royalty revenue on net sales of REGPARA arising prior to July 1, 2009. NPS expects to report cash, cash equivalents and short- and long-term investments of approximately $70 to $75 million at December 31, 2009 versus $106 million at December 31, 2008.