Pharming strengthens balance sheet with $20 million milestone from Salix

Dutch biotech company Pharming Group (Euronext: PHARM) says it has received a $20 million milestone payment from the USA’s Salix Pharmaceuticals (Nasdaq: SLXP) under the terms of the Ruconest (recombinant human C1 esterase inhibitor) commercialization agreement between the two firms for this hereditary angioedema (HAE) treatment.

Sijmen de Vries, Pharming’s chief executive, commented, “The US launch of Ruconest, as announced yesterday [The Pharma Letter November 3], and the receipt of the $20 million milestone from Salix, mark what we perceive as the beginning of a new era for Pharming. The receipt of this milestone payment strengthens our debt-free balance sheet to more than 38 million euros ($47.6 million] as of today. From this solid basis, as result of future receipts of 30% of US net sales, up to $100 million annual sales, increasing stepwise up to 40% for annual US sales in excess of $100 million for the supply of Ruconest to Salix and in addition growing revenues from EU sales, both from our own direct commercialization and by Sobi, we are now aiming for our goal of achieving financial sustainability of the Company.

Ruconest is commercialized by Pharming in Austria, Germany and the Netherlands. Ruconest is distributed by Swedish Orphan Biovitrum (SS: SOBI) in the other EU countries and in Azerbaijan, Belarus, Georgia, Iceland, Kazakhstan, Liechtenstein, Norway, Russia, Serbia and Ukraine. Ruconest is partnered with Salix in North America.