CAMBRIDGE, Mass. -- (BUSINESS WIRE) -- Inspiration Biopharmaceuticals, Inc. (Inspiration) and Ipsen (Euronext: IPN; ADR: IPSEY) today announced the closing of the sale of its lead hemophilia program, OBI-1, to Baxter International Inc. (Baxter), the global leader in hemophilia. The transaction was announced on January 24, 2013 and closed on March 20, 2013. Ipsen and Inspiration jointly agreed to sell their respective rights to OBI-1 as part of the transaction.
Baxter acquired worldwide rights to OBI-1, a recombinant porcine factor VIII in development for the treatment of congenital hemophilia A with inhibitors and acquired hemophilia A, as well as Ipsen’s manufacturing facility for OBI-1 in Milford, Massachusetts. The total aggregate consideration for these rights may exceed $700 million, including an upfront payment of $50 million, development and sales milestones totaling $135 million and annual net sales payments ranging from 12.5% to 17.5% of OBI-1 global net sales. OBI-1 is currently in a pivotal trial for the treatment of individuals with acquired hemophilia A.
This closing completes the joint sale process pursued by Inspiration and Ipsen shortly after Inspiration filed for protection under Chapter 11 of the U.S. Bankruptcy Code on October 30, 2012. Ipsen provided Inspiration with Debtor-in-Possession (DIP) financing to fund Inspiration’s operations and the sale process.
John P. Butler, Chief Executive Officer of Inspiration commented, “Inspiration was founded by the families of boys with hemophilia with a vision to bring new treatment options to people living with this condition. The completion of the sale of OBI-1 to Baxter, following the IB1001 sale to Cangene, fulfills this vision. I am confident that Baxter is the right steward to bring this important product to patients in need.”
On February 19, 2013, Cangene Corporation (Cangene) acquired worldwide rights to IB1001 (recombinant FIX), as well as Inspiration’s rights to two product candidates in pre-clinical development: IB1007 (recombinant FVIIa) and IB1008 (recombinant FVIII). The total aggregate consideration to be received from Cangene for these rights may exceed $300 million, including the upfront payment of $5.9 million, sales milestones totaling $50 million and annual net sales payments tiered up to a double-digit percentage of global net sales.
Overall the total aggregate consideration to be received from Baxter and Cangene for Inspiration’s assets through these two transactions may exceed $1 billion.
Inspiration will provide transition services to Baxter and Cangene for a three-month transition period. Some employees have accepted offers of employment from Baxter or Cangene, which employment will commence following the transition service period. Inspiration will wind down its operations following this transition period.
Evercore Partners served as joint financial advisor to Inspiration and Ipsen on these two transactions. Ropes & Gray served as legal advisor to Inspiration on the transaction. Murphy & King is Inspiration’s bankruptcy counsel and FTI Consulting, Inc. is Chief Restructuring Officer for Inspiration.
About Inspiration Biopharmaceuticals
As the only biopharmaceutical company dedicated solely to hemophilia, Inspiration is committed to improving the care of people with this condition by broadening treatment choices, expanding global access to care and advancing innovative therapies. Founded by two families whose sons have hemophilia, Inspiration is inspired to make a difference in the lives of people impacted by hemophilia around the world. Inspiration's lead product candidates are IB1001, an investigational intravenous recombinant factor IX being developed for the treatment of hemophilia B, and OBI-1, an investigational recombinant porcine factor VIII being developed for the treatment of serious bleeds in patients with congenital hemophilia A with inhibitors or acquired hemophilia A.
For more information about Inspiration Biopharmaceuticals, please visit www.inspirationbio.com.