On January 23, 2023 Clinigen Limited (‘Clinigen’) (‘the Company’), the global pharmaceutical services company, reported the company has entered into an agreement to divest Proleukin (interleukin-2 (aldesleukin)), to Iovance Biotherapeutics, Inc. (NASDAQ: IOVA) (‘Iovance’), a late-stage biotechnology company developing novel T cell-based cancer immunotherapies (tumor infiltrating lymphocyte (TIL) and peripheral-blood lymphocyte (PBL)) (Press release, Clinigen Group, JAN 23, 2023, View Source [SID1234635196]).
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Terms of the agreement include an upfront payment of £166.7 million, a £41.7 million milestone payment upon first approval of lifileucel in advanced melanoma, and double-digit Proleukin global sales royalties from Iovance to Clinigen. The transaction is expected to close in the first quarter of 2023, subject to required regulatory approvals and clearances and other customary closing conditions.
The divestment of Proleukin is an important step in Clinigen’s previously stated strategy of increasing its focus on those areas of the pharmaceutical services market where it has a growing and sustainable competitive advantage. Clinigen provides a strong and highly differentiated offering in pharmaceutical services where the platform provides market-leading access solutions from the clinical phase through to the commercial stage of the drug product life cycle.
David Bryant, Interim Chief Executive Officer of Clinigen, said: "Today’s announcement is a significant milestone for Clinigen as it continues its evolution as a business focused on critical high-value pharmaceutical services. The divestment helps accelerate that services focus, while returning value to the business and allowing Clinigen to benefit from potential future economic value in Proleukin.
"We have had a long-standing partnership with Iovance and believe they are the right partner to take Proleukin forward and ensure continued availability of this important medicine to patients and healthcare professionals."
Greenhill & Co is serving as financial advisor and White & Case LLP as legal advisor to Clinigen.