The economy may be struggling, but royalty stream deals are still hot. Biotech company CV Therapeutics, Inc., based in Palo Alto, scored $175 million in April, with another $10 million milestone payment on the horizon, by selling half the North American royalty stream for its newly approved drug Lexiscan. CVT’s royalties on Lexi- scan come from Tokyo-based Astellas Pharma Inc., which helped finance the development of Lexiscan and will market the drug in the U.S. The buyer was New York-based TPG?Axon Financing, a hedge fund spun out of buyout firm Texas Pacific Group.
Lexiscan, or regadenoson, is a drug used in cardiac evaluations when patients cannot undergo treadmill testing. It was approved on April 10 by the FDA. Lexiscan’s primary competition is Adenoscan, owned by King Pharmaceuticals, Inc., of Bristol, Tennessee. Sales for Adenoscan hovered around $390 million in the last calendar year, but a generic version is expected on the market in 2012.
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