Under terms of the re-worked deal, Takeda will receive $50 million in NPS Pharma stock in exchange for relinquishing ex-North America commercial rights to Revestive and Preotact, a thyroid hormone replacement therapy. NPS partnered with Nycomed for Preotact in 2004 and Revestive in 2007, and then Takeda acquired Nycomed in 2011.
The drugs were sold back to NPS Pharma because they are no longer "strategic" to the company, according to spokesman Tobias Cottman.
European regulators approved Revestive last August but Takeda had not yet launched the drug. That responsibility will now fall to NPS Pharma, which needs to build out a commercial operation in Europe while also remaining focused on selling the drug in the U.S., where it's known as Gattex.NPS Pharma has brought on a former Genzyme sales executive as a consultant to help in Europe. Revestive pricing, reimbursement and a specific launch timetable for individual European countries have not been decided, said CEO Francois Nader. Nader says he approached Takeda about re-acquiring rights to Revestive and Preotact because he wants NPS Pharma to have worldwide commercial rights to its orphan drug products, similar to Alexion Pharmaceuticals (ALXN), Biomarin Pharmaceuticals (BMRN) and Genzyme unit of Sanofi (SNY). But before NPS Pharma can join those peers, the company will need to prove that it can sell Gattex/Revestive worldwide. That Takeda agreed to relinquish two drugs for little more than $50 million in stock will inevitably raise some doubts. Investors have already been in "show me" mode when it comes to NPS Pharma. At $9 per share, NPS Pharma's stock price hasn't budged since FDA approved Gattex in January and the company decided to price a single year of therapy at almost $300,000. NPS Pharma justifies ultra-orphan pricing for Gattex because there are only a few thousand patients in the U.S. who suffer from short bowel syndrome -- a debilitating condition that makes patient dependent on intravenous parenteral nutrition. Critics say Gattex may be hard-pressed to justify its high cost because for most patients, the drug only reduces the need for IV feeding but doesn't eliminate it entirely.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV