Inspiration Biopharmaceuticals and Ipsen today announced the sale of its proprietary hemophilia B product, IB1001 (recombinant FIX), to Cangene Corporation. Ipsen sold its commercialization rights to IB1001 as part of the transaction. Cangene will acquire worldwide rights to IB1001, a recombinant factor IX currently under regulatory review in the United States and Europe. This transaction follows the announcement last month that Inspiration and Ipsen had agreed to sell OBI-1 (recombinant porcine FVIII) to Baxter International. The announcement of today’s transaction completes the sale process of Inspiration’s hemophilia programs.
Inspiration and Ipsen have signed an asset purchase agreement pursuant to which Cangene would acquire worldwide rights to IB1001, as well as Inspiration’s rights to two product candidates in pre-clinical development: IB1007 (recombinant FVIIa) and IB1008 (recombinant FVIII). The total aggregate consideration for these rights may exceed $300 million; including the upfront payment of $5.9 million, sales milestones totaling $50 million and annual net sales payments tiered up to a double-digit percentage of global net sales.
Inspiration and Ipsen previously announced the sale of OBI-1 to Baxter International for a total aggregate consideration that may exceed $700 million, including $135 million in upfront and milestone payments. The United States Bankruptcy Court in Boston approved that transaction on January 24, 2012. With the signing of the transaction for IB1001, total aggregate consideration for Inspiration’s assets may exceed $1 billion.
John P. Butler, Inspiration’s Chief Executive Officer commented, “OBI-1 and IB1001 are important products for people living with hemophilia, bringing innovation and expanding treatment options. We are very pleased that Baxter and Cangene will bring these products to market.”
IB1001 is currently under regulatory review by both the FDA in the US and the EMA in Europe. The product was placed on clinical hold by the FDA in July 2012. Inspiration has been working to resolve the issues that led to the clinical hold and has discussed its plans to address the clinical hold with relevant regulatory authorities. “IB1001 was the first product Inspiration developed, with a vision to expand global access to safe and effective recombinant therapies for people living with hemophilia. We are very pleased that Cangene will take IB1001 forward to make this vision a reality,” commented John R. Taylor, Inspiration’s Chairman and a founder of the company.
The asset purchase agreement was signed on February 6, 2013, and filed with the United States Bankruptcy Court in Boston. The sale is a result of a joint sale process pursued by Inspiration and Ipsen shortly after Inspiration filed for protection under Chapter 11 of the U.S. Bankruptcy Code on October 30, 2012. Ipsen has been providing Inspiration with Debtor-in-Possession (DIP) financing to fund Inspiration’s operations during the sale process.
The sale is subject to certain closing conditions, including Bankruptcy Court approval. Evercore Partners served as exclusive financial advisor to Inspiration and Ipsen on the transaction. Ropes & Gray served as legal advisor to Inspiration on the transaction. Murphy & King is Inspiration’s bankruptcy counsel and FTI Consulting, Inc. is Chief Restructuring Officer for Inspiration.