Wednesday, June 20, 2007

Renovo - Juvista deal with Shire

Shares in Renovo Group, the AIM listed biopharmaceutical company, rose steeply after Shire said it had agreed to pay the group up to $825 million (£414 million) for exclusive development and commercialisation rights to its scar prevention drug, Juvista.

Shire will pay $75 million upfront and will take a $50 million equity stake in Renovo.

The rest of the cash will be paid as milestone payments dependent on the drug, which was originally developed from studies of wound healing in alligator embryos, winning licensing approval and hitting sales targets. The development partnership covers all countries outside the European Union.

Shire and Renovo claim that the total market for Juvista could be worth as much as $4 billion in the US alone, where 42 million people undergo surgery every year.

More

No comments: