US-based health care services company Cardinal Health has entered into a definitive asset purchase agreement with biopharmaceutical company Navidea to purchase the latter’s Lymphoseek product.
Developed for lymphatic mapping, lymph node biopsy and the diagnosis of metastatic spread to lymph nodes for the staging of cancer, Lymphoseek injection consists of a mannose receptor (CD206) binding radiopharmaceutical agent developed for use in external lymph node imaging (lymphoscintigraphy), intra-operative lymphatic mapping (ILM) and sentinel lymph node biopsy.
It enables timely and precise identification of tumour-draining lymph nodes.
Under the agreement, Navidea will receive $80m after the closing of transaction, as well as have an opportunity to earn $230m contingent payment conditioned to reaching certain milestones through 2026.
Navidea will retain a part of intellectual property right of Lymphoseek which will allow the company to develop and sell new immunodiagnostic and immunotherapeutic products for specific purposes in North America, and can continue to produce and sell Lymphoseek, under a different brand, outside of North America.
Navidea president and CEO Michael Goldberg said: “This transaction is very exciting for Navidea and its shareholders as it will enable the company to extinguish the CRG debt and to focus the company on several attractive development efforts.
“With our proven delivery system and broad pipeline of clinical and preclinical products addressing very large commercial opportunities, we intend to build a world-class and highly focused development effort.
“We will leverage our team and financial resources by continuing to seek non-dilutive grant funding and partnerships with leading academic and commercial entities.”
The transaction has received the approval of the Board of Directors of both the companies and is awaiting approval of Navidea’s shareholders, applicable regulatory approvals and the absence of a material adverse effect.