Wragge Lawrence Graham & Co’s Life Sciences team has advised GlaxoSmithKline (GSK) on the sale of its shareholding interests in biopharmaceutical company Convergence Pharmaceuticals to NASDAQ-listed Biogen Idec. The $675 million deal takes place just four years after the team advised GSK on the spin-out venture which created Convergence.
The deal sees Biogen Idec pay Convergence shareholders an upfront payment of $200 million for the business and its innovative portfolio of drugs for use in the treatment of neuropathic pain. These include products that have demonstrated ‘proof of concept’ for treating conditions such as sciatica and trigeminal neuralgia, which causes severe, episodic facial pain. Shareholders will also be eligible for future milestone payments of up to $475 million, contingent on future milestone events.
Corporate partner Ian Piggin led on the deal with support from partner Michael Lacey, senior associate Neil Hendron and head of life sciences Patrick Duxbury. They worked closely with GSK’s Head of Investment Management, Laurence Barker, Senior Counsel, Gary Uy, and Hilary Halper, Corporate Development.
Ian Piggin said: “GSK is demonstrating the effectiveness of a spin-out model strategy backed by venture capital funding. To have progressed from spin-out to a successful exit in such a short timescale is a real success story for our client. Having worked with GSK for a number of years and been involved in the original set-up of Convergence, we were well-placed to assist.”
GlaxoSmithKline is a leading research-based pharmaceutical and healthcare company. Operating across 115 countries, it employs approximately 99,000 people and has a group turnover of £25.5 billion. In October 2010 it spun out certain neuroscience clinical assets of its business to create Convergence Pharmaceuticals, with venture capital funding from Apposite Capital LLP, New Leaf Venture Partners and SV Life Sciences.
Biogen Idec is focused on developing innovative therapies for the treatment of neurodegenerative diseases, hematologic conditions and autoimmune disorders. Founded in 1978, it has grown to become a Fortune 500 company which generates more than $6.9 billion in annual revenues.
Covington & Burling LLP advised the funds Apposite Capital LLP, New Leaf Venture Partners and SV Life Sciences. Olswang LLP advised Convergence’s management team, while Ropes & Gray LLP advised Biogen Idec.
Source: www.wragge-law.com
