NOVATO -- BioMarin Pharmaceutical Inc. (Nasdaq: BMRN) today said it made an upfront payment of $81 million to complete the buy back of certain intellectual property from SA Pathology, a unit of the Central Adelaide Local Health Network in Australia.
The intellectual property includes patents related to the purified form of Naglazyme and the method of using the enzyme in the treatment of mucopolysaccharidosis , or MPS VI, which expire between 2022 and 2023. Prior to this transaction, BioMarin licensed this intellectual property from SA Pathology and paid a 5 percent royalty on net sales of Naglazyme.
The transaction will generate between $10 million to $15 million a year in cash, with no incremental operating costs, according to Jean-Jaques Bienaime, chief executive officer of BioMarin.
"We are pleased to complete this transaction as we are confident in the future sales potential of Naglazyme. We continue to expand the product into new geographies and expect steady growth for years to come. We do not see any competition on the horizon due to the extremely small patient population, the complexity and expense of manufacturing the product and the intellectual property covered by the patents," Mr. Bienaime said. "This deal makes sense for BioMarin because we see continued growth in the global Naglazyme business."
Naglazyme is for (MPS VI) and is a a product wholly developed and commercialized by BioMarin.