Here is why Intercept is up 30%

0

Here is why Intercept is up 30% | Invezz

Ad disclosure

Invezz is an independent platform with the goal of helping users achieve financial freedom. In order to fund our work, we partner with advertisers who compensate us for users that Invezz refers to their services. While our reviews and assessments of each product on the site are independent and unbiased, brands may pay to appear higher up our table rankings or place ads in specific areas of the site. The order in which products and services appear on Invezz does not represent an endorsement from us, and please be aware that there may be other platforms available to you than the products and services that appear on our website. Read more about how we make money >

By:

Ruchi Gupta

on
May 6, 2022

Intercept to sell foreign assets and subsidiaries to Advanz Pharma

Intercept to receive $405 million in upfront payment on closing

Intercept to keep manufacturing and distributing obeticholic acid globally

Intercept Pharmaceuticals Inc. (NASDAQ: ICPT) shares are up 30% after announcing an agreement to sell some of its foreign subsidiaries plus rights to its international operation, including the Ocaliva commercialization license outside the US, to Advanz Pharma. Advanz is a pharmaceutical firm with a strategic focus on hospital and specialty pharmaceuticals in the EU.

Intercept to receive $405 million in upfront payment on closing

CEO and President of Intercept Jerry Durso said:


Are you looking for fast-news, hot-tips and market analysis?

Sign-up for the Invezz newsletter, today.

This agreement marks an important step forward for Intercept as the value it brings to our company allows us to significantly strengthen our balance sheet while providing us with greater strategic optionality during this transformational year and beyond.

After closing, Advanz Pharma will pay Intercept Pharmaceuticals an upfront payment of $405 million. Advanz Pharma will contribute another $45 million if the Intercept receives a pediatric orphan exclusivity extension in Europe. If Advanz Pharma seeks marketing authorization for obeticholic acid in NASH beyond the United States, Intercept could receive compensation on future net revenue of the drug.

Intercept to keep manufacturing and distributing obeticholic acid globally

Intercept shall retain the manufacture and distribution of obeticholic acid worldwide, while Advanz Pharma will be in charge of packing, distribution, and marketing throughout all markets beyond the United States.

Outside of the United States, a large percentage of Intercept employees will join Advanz Pharma. Intercept will keep hiring the remaining global staff. Also, Intercept will keep a presence in the United Kingdom to oversee its worldwide supply chain, assist its quality team, and conduct worldwide clinical trials. Durso added:

We are committed to investing in our core focus areas in the US, including our PBC business, potential future activities in NASH, and our advancing and expanding pipeline. At the same time, we are confident that the strong international team will continue to build on our successful PBC business as they transition to Advanz Pharma.

Ocaliva was given temporary authorization by the European Commission in December 2016 for  PBC treatment in adults with an adverse reaction to UDCA or as a single agent in adults who can’t tolerate UDCA. It is now approved in over 40 countries around the world.

Invest in crypto, stocks, ETFs & more in minutes with our preferred broker,
eToro

10/10

68% of retail CFD accounts lose money

Visit site

Health & pharmaceuticals


Stocks & Shares

Generated by Feedzy