Press Release: Drug Royalty Corporation Announces Acquisition Regarding ENBREL
Drug Royalty Corporation Announces Acquisition Regarding ENBREL TORONTO, May 9 -- Drug Royalty Corporation Inc. (DRC) announced today that Funds that it manages have acquired the future right to receive royalties on the sale of the drug ENBREL(R) from the Massachusetts General Hospital (MGH). The sale involves a one-time payment that entitles DRC to receive royalty payments on sales of ENBREL(R) outside North America going forward. Under the terms of the agreement, the Inventors of some of the technology used to develop ENBREL(R) and MGH received $300 million in proceeds less accrued royalties for the period from July 1st 2006 to December 31st 2006. Speaking on behalf of DRC, Paul Kirkconnell, Managing Director, said: "This is an important transaction for DRC. It marks a royalty acquisition on the sales of one of the top-selling prescription products in the world from a world-class hospital such as MGH." Kirkconnell added, "With access to significant capital and a long track record in completing royalty transactions, we take pride in doing business with research-based institutions such as MGH." About ENBREL(R) ENBREL(R) (etanercept) is indicated for reducing the signs and symptoms of rheumatoid arthritis, polyarticular-course juvenile rheumatoid arthritis, ankylosing spondylitis, psoriatic arthritis and chronic moderate to severe psoriasis. It was first approved for rheumatoid arthritis in 1998, and approval for the other indications followed over the past several years. About Drug Royalty Corporation, Inc. (DRC) Drug Royalty Corporation is a privately held investment management company. The firm deploys its capital by acquiring either existing royalty streams or revenue interests derived from products in the life sciences industry from inventors, academic and research institutions or companies. Drug Royalty can augment capital investments in revenue interests with equity or mezzanine type debt as part of a complete package. Drug Royalty currently owns 14 royalty streams and revenue interests on some of the world's leading pharmaceutical products. The company has been in business since 1992. About Massachusetts General Hospital (MGH) Massachusetts General Hospital, established in 1811, is the original and largest teaching hospital of Harvard Medical School. The MGH conducts the largest hospital-based research program in the United States, with an annual research budget of nearly $500 million and major research centers in AIDS, cardiovascular research, cancer, cutaneous biology, medical imaging, neurodegenerative disorders, transplantation biology and photo medicine. In 1994, MGH and Brigham and Women's Hospital joined to form Partners HealthCare System, an integrated health care delivery system comprising the two academic medical centers, specialty and community hospitals, a network of physician groups, and nonacute and home health services.