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Full Deal Summary

In a potential $1.2bn deal, Arena Pharmaceuticals Inc. licensed United Therapeutics Corp. exclusive worldwide rights to develop, manufacture, and commercialize its ralinepag, which is currently in Phase III for pulmonary arterial hypertension (PAH).

UT will pay Arena $800mm up front, $150mm upon first marketing approval of ralinepag in Japan or one of Europe’s five largest markets (the UK, Germany, France, Italy or Spain), and $250mm upon US marketing approval of an inhaled formulation of ralinepag. Arena is also eligible for tiered low double-digit sales royalties (Strategic Transactions estimates 10-29%). Ralinepag is an oral selective and potent next-generation prostacyclin receptor agonist for PAH. According to BioMedTracker, the compound has a 50% likelihood of approval (3% above average). UT has been active in the PAH deal-making space this year. In April it acquired SteadyMed gaining its lead product Trevyent (treprostinil), which is delivered subcutaneously via the PatchPump device for treating PAH. Five months later it licensed MannKind’s Phase I dry powder formulation of treprostinil. UT already sells three other treprostinil formulations--Remodulin, Tyvaso, and Orenitram. The firm’s PAH drugs brought in nearly $400mm during the Q3 2018. Arena decided to offload ralinepag to focus on Phase II etrasimod in ulcerative colitis, Crohn’s disease, and primary biliary cholangitis, and Phase II olorinab for gastrointestinal pain indications. Last year it licensed Everest Medicines exclusive rights to develop and commercialize ralinepag and etrasimod in China, Taiwan, Hong Kong, Macau, and South Korea.


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Financials


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Overview
Potential Deal Value $1,200.00mm
Upfront Total $800.00mm
Total Regulatory Milestones $400.00mm
Transactions 1 of 2 (11/2018)
Funding Stage Upfront
Upfront (Cash) $800.00mm
Upfront (Total) $800.00mm
Royalty 10%
Royalty 29%
Transactions 2 of 2
Funding Stage MS Regulatory
MS Regulatory (Cash) $400.00mm
MS Regulatory (Total) $400.00mm

Deal Information


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Deal Industry Biotechnology
Pharmaceuticals
Deal Status Final
Deal Type Alliance
R+D and Marketing-Licensing
Intra-Biotech Deal
Includes Royalty or Profit Split Information
Latest Phase at Time of Deal Clinical Development
Phase III

Product Information


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Product 1 of 1
Product Type Pharmaceutical
Generic Name Ralinepag
Lab Code AR392830
APD811
Mechanism of Action Prostaglandin IP2 receptor agonist
Highest Phase at Time of Deal Clinical Development
Phase III
Product Therapeutic Area(s) of Focus Cardiovascular
Hypertension
Licenser Name Arena Pharmaceuticals Inc.
Clinical Developer United Therapeutics Corp.
Manufacturer United Therapeutics Corp.
Licensee Name United Therapeutics Corp.
Carveouts for United Therapeutics Corp.
Territories Licensed Worldwide (All) (Exclusive)