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Taking Stock of Radius Health’s Licensing Agreements

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Licensing agreement with Ipsen Pharma

Radius Health (RDUS) entered into a licensing agreement with Ipsen Pharma in September 2005. Under the agreement, the former acquired the exclusive license for the latter’s compound technology and related patents covering abaloparatide to develop, manufacture, and commercialize abaloparatide-SC.

In lieu of the rights, Radius made a payment of $13 million to Ipsen. Additionally, milestone payments that could be payable to Ipsen under the agreement are ~$28.4 million. Upon FDA approval of Tymlos in April 2017, Radius made a milestone payment of $8.7 million to Ipsen under the agreement. Radius also has to pay a fixed royalty of 5% to Ipsen based on the sales of Tymlos.

Eisai

Radius entered into a licensing agreement with Eisai in June 2006, under which the former obtained the exclusive right and license to develop, manufacture, and commercialize elacestrant from the latter.

This license was for all countries except Japan. In a later amendment in March 2015, the license was extended to Japan as well. Radius has paid an aggregate $0.9 million for the agreement to date. Radius will also have to pay up to $22.3 million upon the achievement of certain clinical and regulatory milestones.

Teijin Limited

Radius Health entered into a licensing and development agreement with Teijin Limited for abaloparatide-SC in July 2017. Under the agreement, Radius granted Teijin the exclusive license to develop and commercialize abaloparatide-SC in Japan.

Radius received an up-front payment of $10 million and could receive further payments upon the achievement of certain regulatory and sales milestones, along with a fixed low-double-digit royalty based on the net sales of abaloparatide-SC in Japan.

The two companies can further collaborate on new indications for the product while Radius maintains the full global rights to its development program for abaloparatide-TD.

Stellar stock performance

The market has responded very positively to Radius Health’s recent performance. In the past month, Radius stock has generated a 28% return for its shareholders. In comparison, peers Novartis (NVS), Pfizer (PFE), and Array Biopharma (ARRY) have generated returns of 4.7%, 1.3%, and 20.2%, respectively.

Radius Health makes up ~0.22% of the iShares Nasdaq Biotechnology ETF’s (IBB) total portfolio holdings.

In the next part of the series, we’ll take a look at Radius Health’s financial performance following the launch of Tymlos.

 

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