Cardinal Health to pay up to $310m for Navidea’s LymphoSeek

Navidea (NYSE:NAVB) said today it inked a letter of intent with Cardinal Health (NYSE:CAH) to sell its Lymphoseek injection for up to $310 million.

The sale includes all current FDA-approved indications, as well as future oncology diagnostic indications in North America and other related assets, Dublin, Ohio-based Navidea said.

Through the deal, Navidea is slated to receive $80 million upon closing, with future considerations tied to annual sales of Lymphoseek and sales-based milestones.

“This is a significant announcement for all of us at Navidea. This agreement with Cardinal Health will provide significant financial resources for us to repay all outstanding debt to CRG and accelerate the development of our robust pipeline of diagnostic products, which are notably focused on rheumatoid arthritis and cardiovascular disease, as well as our macrophage therapeutics pipeline. We have enjoyed a longstanding and successful relationship with Cardinal Health, and we are looking forward to continuing our collaboration,” Navidea board chair Dr. Michael Goldberg said in a press release.

As part of the deal, Cardinal Health will license a portion of the IP back to Navidea so it can develop, manufacture, sell and distribute new products that do not compete with the current Lymphoseek. Navidea will also be allowed to continue to market, manufacture, sell and distribute Lymphoseek outside of North America.

Lymphoseek, FDA-approved since 2014, is indicated for sentinel lymph node detection in breast cancer, melanoma, and oral cavity head and neck cancers.

“Lymphoseek has been an important diagnostic tool for physicians and their patients who are looking for additional clarity when facing potentially life-changing diagnoses. We have been Navidea’s exclusive US distributor of Lymphoseek for many years. That relationship has set the groundwork for this new agreement, and the Cardinal Health team will continue to market, sell and provide Lymphoseek to those who need it,” Cardinal Health nuclear pharmacy services prez Tiffany Olson said in prepared remarks.

In May, Cardinal health said that its Cordis subsidiary is getting back into the drug-eluting stent game via an overseas distribution agreement with Biosensors International (PINK:BSNRY).

The deal calls for Cordis to sell the BioFreedom, BioMatrix NeoFlex, BioMatrix Alpha and Chroma stents made by Biosensors in Europe, the Middle East, Australia and New Zealand. Cordis said it plans to gradually roll out a new private-label brand for stents: Lumeno.

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