NPS Pharmaceuticals has sold royalty rights for sale of its hormone disorder drug for $38.4 million, the company said Tuesday.
The company said it retains royalties for Regpara in excess of cumulative royalties of $96 million, or 2.5 times the upfront purchase price. Regpara is approved in Japan as a treatment for hyperparathyroidism during dialysis therapy. Hyperparathyroidism is a hormone disorder that can result in neurological symptoms, fatigue, and osteoporosis.
"This transaction allows us to access significant capital in a manner that is non-dilutive to our shareholders," said President and CEO Dr. Francois Nader, in a statement.
Under its deal, a fund managed by DRI Capital Inc. is entitled to royalty payments related to net sales of Regpara occurring on or after July 1.
NPS said it expects to report between $70 million and $75 million in cash, cash equivalents and short- and long-term investments as of Dec. 31.
Shares of NPS Pharmaceuticals Inc. rose 9 cents, or 2.5 percent, to $3.68 in morning trading.