Former Fumapharm shareholders get $761mm cash for selling earn-out interest to Royalty Pharma; $510mm added

In exchange for $761mm in cash, Royalty Pharma (operates by taking on royalty interests in biopharma products) has acquired from the former owners of Fumapharm the future earn-outs they were entitled to under Biogen Idec’s 2006 $220mm takeover of Fumapharm. The earn-outs--consisting of $315mm in regulatory- and sales-based achievements--are predominantly tied to US or EU approval ($15mm) and commercialization ($300mm) of BG12 (dimethyl fumarate) for relapsing-remitting multiple sclerosis. Royalty Pharma is also acquiring an interest in the earn-out for Fumaderm (fumaric acid esters), an approved drug in Germany for moderate-to-severe plaque psoriasis.