Dyax Monetizes a Portion of Its Revenues from Phage Display Licensing and Funded Research Program for $30 Million
Thursday August 24, 4:00 pm ET
Conference Call Scheduled at 4:30 p.m. ET Today
Hate these deals - reminds me of Ligand...
CAMBRIDGE, Mass.--(BUSINESS WIRE)--Aug. 24, 2006--Dyax Corp. (Nasdaq: DYAX - News) announced today that it has entered into an agreement with Paul Capital Partners' Paul Royalty Fund II, L.P. (Paul Royalty) pursuant to which Dyax has monetized a percentage of the revenues generated through Dyax's Phage Display Licensing and Funded Research Program (LFRP) for a $30 million upfront cash payment. Dyax also has an option to receive an additional $5 million payment from Paul Royalty in the event that the LFRP achieves certain revenue goals within the next two years. The agreement is limited to the LFRP revenues and does not affect Dyax's current or future internal drug development nor any of its co-development programs.
Under the terms of the agreement, Paul Royalty's rights to receive revenues through the LFRP would continue for approximately ten years. The exact percentage of Dyax's LFRP revenue that Paul Royalty will receive is tiered and declines as certain revenue levels are achieved. This allows Dyax to retain a substantial interest in future LFRP revenues, and maximizes Dyax's participation in these revenues when products developed by Dyax's licenses are expected to reach the marketplace. Upon termination of the agreement, all rights to the LFRP revenues will revert to Dyax. Dyax also retains the right to repurchase the revenue rights to the LFRP at any time.
"This financing structure allows Dyax to unlock the value of future revenues from this highly successful licensing program and receive a substantial cash infusion without a dilutive equity financing," commented Henry E. Blair, Chairman and Chief Executive Officer of Dyax. "The upfront $30 million payment will allow us to continue advancing our HAE and CABG programs and to fund other therapeutic leads from Dyax's extensive pipeline of internally discovered candidates. Furthermore, Dyax still retains a significant interest in future LFRP revenues, the value of which is now validated."
"Paul Royalty is pleased to provide Dyax access to a non-dilutive source of capital to fund its internal development programs," remarked Gregory B. Brown, MD, Partner at Paul Capital Partners. "Dyax's LFRP estate represents a unique investment opportunity for Paul Royalty due to its extensive use within the pharmaceutical and biotechnology industry as a powerful tool for accelerating discovery and development of therapeutic and diagnostic agents. This estate has demonstrated great potential to identify new drug candidates, and to provide opportunities to participate in numerous product candidates creating significant value both for our investors and for Dyax."
Dyax will host a webcast and conference call, including an open question and answer session, this afternoon, August 24, 2006, to discuss the terms of the deal.
Date: Thursday, August 24, 2006
Time: 4:30 p.m. ET
Telephone Access: Domestic callers, dial 888-873-4896
International callers, dial 617-213-8850
Passcode 48318002
Online Access: Go to the Investor Relations section of
the Dyax website (www.dyax.com) and follow
instructions for accessing the live
webcast. Participants may register in
advance.
A replay of the conference call will be available through September 7, 2006 and may be accessed by dialing 888-286-8010. International callers should dial 617-801-6888. The replay passcode for all callers is 27047929. The webcast will be archived on the Dyax website for an indefinite period of time.
About Dyax's Phage Display Licensing and Funded Research Program
Dyax leverages its phage display technology broadly with over 75 revenue generating licenses and collaborations for therapeutic discovery, as well as in non-core areas such as affinity separations, diagnostic imaging, and research reagents. In general, these licenses and collaborations fall into three distinct categories: patent license, library license and funded research. Currently, 14 product candidates generated by our licensees and collaborators using our technology are in clinical trials.
Furthermore, we estimate that our licensees and collaborators have over 70 additional product candidates in various stages of research and preclinical development that were generated using our technology. We anticipate that we will receive milestones and royalties from our licensees and collaborators to the extent that these product candidates advance in development and are ultimately commercialized.
About Paul Capital Partners and Paul Royalty Fund
Paul Capital Partners manages nearly $5 billion in equity capital commitments for its three investment platforms that include Healthcare Royalty and Revenue Interests, Private Equity Secondaries and Top Tier Fund-of-Funds. The firm has offices in New York, San Francisco, Paris, London and Toronto. The Paul Royalty Fund is one of the largest dedicated healthcare funds globally, with approximately $1 billion in equity capital commitments. The Paul Royalty Fund has made investments in the pharmaceutical, biotechnology, and medical device sectors valued at more than $850 million. These investments are focused on commercial stage companies and products, and consist of investments in the form of royalties, revenue interests, equity and debt. For more information on Paul Capital Partners and the Paul Royalty Fund visit www.paulcapital.com. |
