Nabi Biopharma gets $5 million milestone under Fresenius accord

In some positive news for US drug developer Nabi Biopharmaceuticals (Nasdaq: NABI), the company said it has received a $5 million milestone payment from Fresenius USA Manufacturing that was triggered by the first commercial sale of Phoslyra (calcium acetate solution), under the agreement governing the company's 2006 sale of PhosLo (calcium acetate) and related assets to Fresenius.

These assets included the rights to a new liquid formulation of PhosLo that Fresenius has commercialized as Phoslyra, a phosphate binder indicated for the reduction of serum phosphorus in patients with end stage renal disease.

Nabi received $65 million when the PhosLo sale transaction closed in November 2006 and has collected an additional $18 million in milestone payments since then. The company has the opportunity to receive a $2.5 million milestone payment tied to approval of a new indication for PhosLo along with around $65 million in potential royalty payments based on annual sales of Phoslyra over a base amount. Under the accord with Fresenius, Nabi can collect Phoslyra royalties until 10 years after the closing date, or November 14, 2016.