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INCLINE VILLAGE, Nev.,
Oct. 9, 2012 /PRNewswire/ -- PDL BioPharma, Inc. (PDL) (NASDAQ: PDLI) and AxoGen, Inc. (OTCBB: AXGN) announced today that they closed a structured financing transaction on
October 5, 2012, in which PDL provided AxoGen with an aggregate of
$20.8 million in exchange for royalties on certain AxoGen revenues. AxoGen is a regenerative medicine company dedicated to advancing the science and commercialization of surgical solutions for peripheral nerve repair. This financing allows AxoGen to strengthen and accelerate its sales and marketing efforts as well as to explore pipeline opportunities.
The total financing of
$20.8 million was provided pursuant to a Revenue Interests Purchase Agreement that included
$19,050,000 in cash PDL paid to AxoGen on
October 5, 2012, and
$1,750,000 PDL paid to AxoGen on
August 14, 2012, pursuant to an Interim Revenue Interest Purchase Agreement. The Revenue Agreement has an eight year term, and provides PDL with royalties based on AxoGen revenues, subject to certain minimum payment requirements beginning in the fourth quarter of 2014 and the right to require AxoGen to repurchase the revenue contract at the end of the fourth year. AxoGen has been granted certain rights to call the revenue contract in years five through eight. In addition,
John McLaughlin, president and chief executive officer of PDL, was elected to the Board of Directors of AxoGen immediately following the closing.
"We are very impressed with the depth and breadth of experience in this accomplished AxoGen team," said Mr. McLaughlin. "AxoGen products are changing the way peripheral nerve repair is performed, and PDL is pleased to have the opportunity to contribute to the growth of this innovative business."