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PROLOR Biotech, Inc. Message Board

  • burnaka May 3, 2013 11:49 AM Flag

    Any one know what PBTH paid for the patent portfolio???

    Was it cash, license deal, any long timer know??? I can not seem to find it. seems it could have been too much, but I could not find it. I went through countless SEC filings too, could not find it there either, unless I missed it.

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    • Intellectual Property

      We license from Washington University the intellectual property that is necessary to conduct our business. In 2001, we initially licensed from Washington University core intellectual property pursuant to a non-exclusive license agreement and, in 2004, we amended this license to make us the exclusive licensee of the two key CTP patents in connection with 11 therapeutic proteins. Pursuant to the prior license agreement, Modigene Delaware issued a total of 221,979 shares of its common stock to Washington University (378,796 shares of our common stock on a post-merger basis). In February 2007, we entered into a new license agreement, which we refer to as the License Agreement, with Washington University that superseded the prior license agreement. Pursuant to the new License Agreement, Washington University granted us the exclusive license to three CTP patents and expanded the field of use to all natural and non-natural therapeutic proteins and peptides (other than LH, FSH, TSH and hCG). Under the License Agreement, we have the right to sub-license the licensed patents. The License Agreement terminates in 2018 when the last of the patents licensed to us under the License Agreement expires, unless terminated earlier. Under the License Agreement, we were required to pay an initial fee of $100,000 in installments over the 18 months following the effective date of the License Agreement. In addition, we are required to pay annual license maintenance fees of $30,000 (payable semi annually until the first commercial sale); royalty fees of 1.5% to 5% from net revenues (with certain required minimum royalties after the first commercial sale of $10,000, $20,000 and $40,000 for the first, second, and third year and beyond, respectively), and sub-licensing fees of 7.5% to 20% on sub-licensing payments.

    • We license the CTP intellectual property necessary to develop CTP-based drug candidates from Washington University of St. Louis pursuant to a License Agreement. The License Agreement is exclusive for human therapeutics, with the right to sub-license, for all therapeutic proteins and peptides, of natural or non-natural sequence, other than four endocrine proteins - LH, FSH, TSH and hCG, previously licensed to Merck & Co., a leading pharmaceutical company.

      In addition, we have been issued by the U.S. Patent Office the following CTP-related patents:

      Three new proprietary patents covering our long-acting hGH drug candidate (2009, 2011)

      A new CTP platform patent covering CTP-modified compositions of a wide array of classes of therapeutic proteins, including hormones, high affinity protein ligands, proteins that induce or regulate an immune response, proteins that are involved with autocrine and paracrine activities, and mimetics of these therapeutic proteins, as well as other types of proteins (2011)

      CTP-modified interferons (2011)

      We also license intellectual property necessary to develop RevPEG drug candidates from the Weizmann Institute of Science (Israel) pursuant to a License Agreement.

      We have filed several other patent applications covering our platforms and drug candidates in the U.S. and other territories.

      • 1 Reply to john_j_315
      • burnaka May 3, 2013 3:09 PM Flag

        thanks John, seems pbth got a good royalty, payment schedule. Based on a 7.00 share price and 378,796 shares originally paid Washington U the whole library cost 2,651,572 . I was curious because I have trouble justifying 480 million for a 2.6 million library. Granted they have moved one to pre phase three. Well I was not sure what was originally paid I had a hunch it was under 5 million, Surprising is that BMY did not grab the whole library. I guess they picked what they wanted, Not bad in the big picture, paying all stock valued below 3 million and netting 480 million reselling it.

        Of course modigen was trading at about a buck or a buck fifty when they bought that library so the library was really priced closer to 500k, just trying to see what opko is spending 480 million for.

        Hilarious, Good luck Costos, you haven't a prayer.