On March 3, 2017 Navidea Biopharmaceuticals (NYSE MKT: NAVB) reported the completion of the sale to Cardinal Health (NYSE: CAH) of its Lymphoseek product for lymphatic mapping, lymph node biopsy and the diagnosis of metastatic spread to lymph nodes for the staging of cancer in North America (Press release, Navidea Biopharmaceuticals, MAR 3, 2017, View Source [SID1234517982]). Navidea received approximately $83 million at closing, and will have the opportunity to earn up to $227 million of contingent consideration based on certain milestones through 2026, with $17.1 million of that amount guaranteed over the next three years. Schedule your 30 min Free 1stOncology Demo! Cardinal Health will license a portion of the acquired intellectual property back to Navidea to allow Navidea to develop and sell new immunodiagnostic and immunotherapeutic products for specific purposes in North America, and to continue to produce and sell Lymphoseek, mostly under a different brand name, outside of North America.
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As a result of this transaction, CRG has provided a full release of all liens on Navidea’s assets, and all frozen accounts will be transferred back to Navidea control. The unsecured loan from Platinum Partners has been also been repaid.
"This transaction is transformative for Navidea, as we will have the financial flexibility to invest in our deep pipeline of activated macrophage targeted imaging agents and therapeutics. We want to commend Cardinal Health for their professionalism throughout this trying process for Navidea," said Dr. Michael M. Goldberg, President and CEO of Navidea Biopharmaceuticals.
Post-closing and post paying off all outstanding notes and transaction-related expenses, Navidea will have $15.6 million in cash and $3.3 million in payables, a large portion of which is tied to the 4694 program which Navidea is seeking to divest in the near term now that the liens have been released.
Navidea will hold an investor webinar at 4:30pm Eastern time on Monday, March 6, 2017. Slides will be posted on the Navidea website a few minutes prior to the start of the webinar. Investor Q&A will be entertained after the conclusion of the presentation.
Call in details are as follows. United States: +1 (415) 655-0060, Access Code: 808-819-426. You will be in listen only mode.
The call and presentation will also be simulcast with the following details View Source
After registering, you will receive a confirmation email containing information about joining the call. You must be connected on-line in order to participate in the Q&A session.