Nabi Biopharmaceuticals To Receive $5 Million Milestone Payment
December 11, 2009 (FinancialWire) — Nabi Biopharmaceuticals (NASDAQ: NABI) announced the initiation of a Phase I/II clinical trial for two of the antigens in the PentaStaph vaccine candidate, which is now owned by GlaxoSmithKline Biologicals .
As a result of the initiation of the trial, Nabi is eligible for and has invoiced GSK $5 million for successful completion of this milestone due under the agreement governing Nabi’s sale of PentaStaph (Pentavalent S. aureus Vaccine) and related assets to GSK. This milestone payment was contingent on initiation of the Phase I clinical trial for two PentaStaph antigens that target the most virulent toxins produced by the bacteria.
PentaStaph was sold to GSK for a total consideration of $46 million, including $26 million associated with accomplishing four milestone tasks. The remaining $21 million in payments contemplated in the transaction are associated with three milestones which the company expects to complete within the next 14 months. These remaining milestones include completion of the Phase I trial, the successful transfer of specified materials and the successful transfer of technology. Nabi received a cash payment of $21.5 million when the transaction closed in November 2009 that included $20 million associated with the transaction close, $1 million associated with the sale of a separate pre-clinical program for a vaccine against S.epidermedis and $0.5 million as reimbursement for license fees and clinical materials previously manufactured for use in the Phase I trial.
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