Nabi Biopharmaceuticals Announces Receipt of $5 Million Milestone Payment
ROCKVILLE, Md., Aug 16, 2011 (GlobeNewswire via COMTEX) -- Nabi Biopharmaceuticals /quotes/zigman/87333/quotes/nls/nabi NABI -2.78% has received a $5 million payment from Fresenius USA Manufacturing, Inc. (Fresenius) that was triggered by the first commercial sale of Phoslyra, a milestone under the agreement governing the Company's 2006 sale of PhosLo(R) (calcium acetate) and related assets to Fresenius. These assets included the rights to a new liquid formulation of PhosLo that Fresenius has commercialized as Phoslyra.
Nabi received $65 million when the PhosLo sale transaction closed in November 2006 and has collected an additional $18 million in milestone payments since then. The Company has the opportunity to receive a $2.5 million milestone payment tied to approval of a new indication for PhosLo along with approximately $65 million in potential royalty payments based on annual sales of Phoslyra over a base amount. Under the agreement with Fresenius, Nabi can collect Phoslyra royalties until ten years after the closing date, or November 14, 2016.
"We are pleased that this milestone has been achieved and hope that it will unlock the significant remaining value of our potential PhosLo revenue stream," said Dr. Raafat Fahim, President and Chief Executive Officer of Nabi Biopharmaceuticals. "Since closing the sale in 2006, we have successfully achieved five of the six milestones under the sale agreement. We look forward to receiving additional potential PhosLo revenues."
About Nabi Biopharmaceuticals
Nabi Biopharmaceuticals leverages its experience and knowledge in powering the immune system to develop products that target serious medical conditions in the area of nicotine addiction. Nabi Biopharmaceuticals is currently developing NicVAX(R) (Nicotine Conjugate Vaccine), an innovative and proprietary investigational vaccine for treatment of nicotine addiction and prevention of smoking relapse. The company is headquartered in Rockville, Maryland. For additional information about Nabi Biopharmaceuticals, please visit our Web site: http://www.nabi.com .
Statements in this release that are not strictly historical are forward-looking statements and include statements about products in development, results and analyses of clinical trials and studies, research and development expenses, cash expenditures, licensure applications and approvals, and alliances and partnerships, among other matters. You can identify these forward-looking statements because they involve our expectations, intentions, beliefs, plans, projections, anticipations, or other characterizations of future events or circumstances. These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties that may cause actual results to differ materially from those in the forward-looking statements as a result of any number of factors. These factors include, but are not limited to, risks relating to our ability to conduct and obtain successful results from our two Phase III clinical trials for NicVAX the first of which failed to meet its primary endpoint; GSK's failure to exercise its option for and successfully commercialize NicVAX; GSK's failure to successfully develop and commercialize any future generation candidate nicotine vaccine; our ability to commercialize NicVAX if GSK does not exercise its option for NicVAX; our ability to identify an alternative partner or to raise sufficient new capital resources to fully develop and commercialize NicVAX if GSK does not exercise the NicVAX option; our ability to successfully contract with and obtain manufactured NicVAX product from contract manufacturing organizations; our ability to attract, retain and motivate key employees; our ability to collect any further milestones and royalty payments under the PhosLo agreement; the ability to obtain regulatory approval for NicVAX and any future generation candidate nicotine vaccine in the U.S. or other markets; our ability to comply with reporting and payment obligations under government rebate and pricing programs; and loss of full use of our net operating loss carry forwards. Some of these factors are more fully discussed, as are other factors, in our Annual Report on Form 10-K for the fiscal year ended December 25, 2010 filed with the Securities and Exchange Commission. We do not undertake to update any of these forward-looking statements or to announce the results of any revisions to these forward-looking statements except as required by law.