Ariad sells off a share of Iclusig for a shot at $200M in R&D cash

Ariad Pharmaceuticals ($ARIA) has inked a deal with PDL BioPharma ($PDLI), trading a long-term royalty on its only marketed drug in exchange for money to develop another. Under the so-called synthetic-royalty agreement, PDL will pay its partner $50 million now and $50 million in a year in exchange for an escalating royalty on future sales of Iclusig, Ariad's treatment for acute lymphoblastic leukemia. PDL's royalty rights will extend until the company has recouped its balance, and Ariad can extend that run by opting into an additional $100 million at any point in the next year. With the cash, Ariad plans to invest in brigatinib, a Phase III treatment for non-small cell lung cancer that the company hopes to submit for approval next year. Release

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