NPS Pharma (NPSP) Amends Cinacalcet HCl Agreement with Amgen (AMGN); Acclerates Payments
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NPS Pharmaceuticals, Inc. (Nasdaq: NPSP), has amended its license agreement with Amgen Nasdaq: AMGN) for royalties from sales of cinacalcet HCl (Sensipar®/Mimpara®).
Under the revised agreement, NPS will receive a one-time $25 million payment in July 2012 in exchange for its rights to receive royalties under the license agreement that are earned after December 31, 2018. The amendment also limits the royalty offset of the royalty advance that NPS received from Amgen in August 2011 to $8 million per quarter with royalties in excess of $8 million paid to NPS for the respective quarter, thereby extending the royalty advance repayment period. After the repayment of the royalty advance and a 9 percent per annum discount factor on the outstanding balance, Amgen will resume paying NPS all royalties earned through December 31, 2018. As of June 30, 2012, NPS owed Amgen a balance of $92 million on the royalty advance.
Under the revised agreement, NPS will receive a one-time $25 million payment in July 2012 in exchange for its rights to receive royalties under the license agreement that are earned after December 31, 2018. The amendment also limits the royalty offset of the royalty advance that NPS received from Amgen in August 2011 to $8 million per quarter with royalties in excess of $8 million paid to NPS for the respective quarter, thereby extending the royalty advance repayment period. After the repayment of the royalty advance and a 9 percent per annum discount factor on the outstanding balance, Amgen will resume paying NPS all royalties earned through December 31, 2018. As of June 30, 2012, NPS owed Amgen a balance of $92 million on the royalty advance.
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