NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: DRUG ROYALTY CORPORATION INC.
TSE SYMBOL: DRI
JUNE 15, 1998
Drug Royalty Takes Strategic Step Towards $20 Million in
Annual Royalty Revenue - $25 Million Investment Expected
to Boost Royalty Revenue by $5 Million
TORONTO, ONTARIO--Drug Royalty Corporation Inc. today announced
that it has agreed to invest $25 million for a royalty interest in
the worldwide sales of Amgen Inc.'s leading drug, Neupogen(R),
with sales of over US$1.0 billion. This royalty interest is
expected to generate for Drug Royalty about $5 million in
royalties over the next twelve months.
"This investment represents a firm step forward in implementing
Drug Royalty's strategic plan of accelerated growth in royalty
revenue, where our goal is to achieve at least $20 million in
annual sustainable royalties," said Ian Lennox, President and CEO
of Drug Royalty. "I expect that we will make another similar-sized
investment within six months."
Neupogen is a drug developed and sold worldwide by Amgen Inc., the
world's largest independent biotechnology company. It is used to
prevent infection in cancer patients undergoing certain types of
chemotherapy and bone marrow transplants. Neupogen is also used
by AIDS patients and others suffering from various forms of
neutropenia (low white cell count). In April, it was approved for
additional use in acute myeloid leukemia patients. Neupogen is now
approved for five indications in the US and has provided benefit
to more than one million patients worldwide since it was first
approved. In 1997 worldwide sales of Neupogen were US$1.07
billion.
"The current royalties from this interest will enable Drug Royalty
to leverage its balance sheet with debt," noted Jim Webster,
Executive Vice-President of Drug Royalty. "Neupogen is a proven
product which dominates the colony-stimulating factor market in
the US."
"This investment re-deploys the funds from the December sale of
our interest in Dura and more than doubles the royalties which
were generated from Dura." Webster added, "We are in active
discussions with several new partners." Drug Royalty has $18
million in cash after completion of this transaction.
Drug Royalty has royalty interests in Amgen Inc. of California,
Cambridge Antibody Technology (C.A.T.) of the U.K., Phytogen Life
Sciences of Vancouver, UltraVision of California, Searle (Canada),
Paladin Labs of Vancouver, IMRO of Montreal, University of
Birmingham/Peptide Therapeutics Group of the U.K., Spectral
Diagnostics Inc. of Toronto, NeuroVir of Vancouver, ILEX(TM)
Oncology of Texas, Dura Pharmaceuticals of San Diego and Ethical
Holdings of the U.K.
Drug Royalty provides shareholders with a means of participating
in the global life sciences industry by creating and acquiring
royalty interests in pharmaceuticals, biotechnology products,
diagnostics and devices. Drug Royalty is implementing its
strategy through:
- creating new royalty contracts by providing funds to life
science companies in return for royalties;
- acquiring existing royalty streams from public institutions,
inventors or companies;
- acquiring firms which primarily earn their revenues from
royalties; and,
- acquiring intellectual property rights which can be licensed for
royalties.
Drug Royalty's common shares trade on The Toronto Stock Exchange
under the symbol DRI. This release and other information about
Drug Royalty Corporation Inc. can be found on their website at
www.drugroyalty.com, or directly from:
-30-
FOR FURTHER INFORMATION PLEASE CONTACT:
Drug Royalty Corporation Inc.
Ian Lennox
President & CEO
(416) 863-1865 ext.234
(416) 863-5161 (FAX)
ianl@drugroyalty.com
or
Drug Royalty Corporation Inc.
Jim Webster
Executive Vice-President
(416) 863-1865 ext.225
(416) 863-5161 (FAX)
jimw@drugroyalty.com |
