Clinigen to acquire US rights to Proleukin for up to $210m

British pharmaceutical company Clinigen has struck a deal with Swiss rival Novartis to acquire the US rights to Proleukin (aldesleukin), an FDA-approved treatment for metastatic melanoma and metastatic renal cell carcinoma. The all-cash transaction is valued at up to $210 million, with payments structured across three installments. The acquisition marks a significant expansion for Clinigen, granting them exclusive global rights to Proleukin.

Clinigen’s strategic acquisition enhances portfolio

Clinigen has agreed to make an initial payment of $120 million, followed by a deferred payment of $60 million over the year following the transaction’s closure. A final $30 million will be paid contingent on future sales milestones. As part of this deal, Proleukin joins Clinigen’s Commercial Medicines portfolio, which already includes critical care products such as Foscavir, Ethyol, and Totect.

Proleukin’s market potential and revenue history

Proleukin, a synthetic form of human interleukin-2 (IL-2), plays a crucial role in activating lymphocytes that fight disease and infections. According to IQVIA (IMS) data, Proleukin generated $60 million in revenue for the year leading up to June 30, 2018. Clinigen sees substantial potential in revitalising the product, and it will become the largest product in their portfolio in terms of current sales.

Clinigen’s growth trajectory

Shaun Chilton, Clinigen Group’s Chief Executive Officer, described the acquisition as “highly earnings enhancing,” adding that it would not only benefit the Commercial Medicines division but also enhance Clinigen’s overall portfolio. The deal will allow the company to expand its footprint in the US market and leverage the product’s growth potential.

Chilton also pointed to Proleukin’s potential for revitalisation as a key factor in boosting revenues across Clinigen’s diverse portfolio of hospital-only medicines. Clinigen’s previous acquisitions of CSM and iQone have strengthened their presence in Continental Europe, and the Proleukin deal will further diversify their international reach.

Financial impact and debt reduction

From a financial perspective, Clinigen expects this acquisition to significantly enhance its cash flow. The structure of the deal is aligned with the company’s goal of quickly reducing its debt profile, with the cash-generative nature of the business expected to drive this process.

The transaction, pending US anti-trust clearance, is anticipated to close in April 2019, marking a key step in Clinigen’s ongoing growth and expansion strategy.