Lumos Pharma to sell its Priority Review Voucher ERVEBO to MSD
Based upon an agreed valuation of $100 million Merck will pay Lumos $60 million
Austin: Lumos Pharma, Inc. has announced that it has entered into a definitive agreement to sell its Priority Review Voucher (PRV) to Merck, known as MSD outside the United States and Canada.
The PRV was granted in conjunction with the approval by the U.S. Food and Drug Administration (FDA) of ERVEBO®, a vaccine developed by the Company's licensee, Merck, for the prevention of the Zaire Ebola virus disease. Under the terms of the original license agreement Lumos Pharma is entitled to retain 60% of the value of the PRV. Based upon an agreed valuation of $100 million Merck will pay Lumos $60 million. The transaction remains subject to customary closing conditions, including anti-trust review.
The total valuation of the PRV in the transaction was $100 million. Lumos Pharma will receive approximately $60 million which represents the Company's 60% interest in the total value of the PRV. The $60 million will be received in two non-contingent payments, $34 million in 2020 and $26 million in the first quarter of 2021. The non-dilutive funds from this transaction will provide additional capital to support the expansion of its pipeline through the in-licensing or acquisition of another novel therapeutic candidate for those suffering from rare diseases. These funds are in addition to the Company's cash position as of March 31, 2020 which was anticipated to be sufficient to support the Company's current operations through the Phase 2b clinical trial read-out.
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