BioSante Pharmaceuticals completes Azur Pharma Elestrin royalty buydown

Mar 31 2010

BioSante Pharmaceuticals, Inc. (NASDAQ: BPAX) today announced the successful completion of the Azur Pharma Elestrin royalty buydown, and financial results for the year ended December 31, 2009.

Elestrin Royalty Buydown Complete

In December 2009, the company announced that it had entered into an agreement with Azur (BioSante's licensee for Elestrin in the U.S.) to monetize its Elestrin royalty stream and certain potential milestones through a royalty and milestone buydown. In 2009, the company received $1.0 million and the company now reports receiving the balance of $2.16 million in the first quarter of 2010. BioSante maintains the right to receive up to $140 million in sales-based milestone payments from Azur, based on Elestrin reaching certain predefined sales in a calendar year.

Financial Results for 2009

The company's net loss was approximately $47.5 million or $(1.40) per basic and diluted share for the year ended December 31, 2009, compared to a net loss of $17.4 million or $(0.64) per basic and diluted share for the same period in 2008. This increase in net loss was due primarily to transaction and non-cash technology related expenses associated with the company's merger with Cell Genesys, Inc., which closed in October 2009. As of December 31, 2009, BioSante's cash balance was approximately $29.9 million as compared to $14.8 million at December 31, 2008. Subsequently, on March 8, 2010, the company completed a registered direct offering with Great Point Partners, LLC and Deerfield Management Company for gross proceeds of $18.0 million. The offering resulted in net proceeds to the company of approximately $17.5 million, after deducting placement agent fees and offering expenses. Consequently, on March 9, 2010, BioSante's cash balance was approximately $42 million.