INFORMATION RELEASE - Major Licensing Deal Closed

21 April 2020

MURRAY INTERNATIONAL PARTNERS (MIP) is pleased to highlight the news that Porton Biopharma Limited (“PBL”), a UK government-owned biologics manufacturer and intellectual property holder, has signed an exclusive licensing and distribution deal with Clinigen Group plc (“Clinigen”) for the commercial rights to Erwinase®/Erwinaze®, a life-saving asparagine-depleting enzyme used in the treatment of juvenile acute lymphoblastic leukaemia (ALL).  Some 30% of children treated with the first line asparaginase derived from E. coli (Oncospar®) develop hypersensitivity to it.  PBL’s product is an immunologically distinct asparaginase from Erwinia chrysanthemi which ensures that these children can continue to receive the crucial cancer treatment.

In June 2018, Dr Michael Murray, Principal at MIP, was appointed Interim Commercial Director of PBL to support the company in the negotiation of a new 10-year licence for the commercial rights to Erwinase®/Erwinaze® and acted as an advisor on the deal.  Following the issuance of a formal notice of termination, as was a condition of the previous 10-year licence with Jazz Pharmaceuticals PLC in February 2019, MIP advised PBL on financial and operational terms for a new 10-year licence and participated in a complex series of negotiations working with the PBL executive team; its legal advisors, Pinsent Masons; the Department of Health of the UK government; and its investment bank, Piper Sandler Limited, to secure a new deal.

Sales of Erwinase®/Erwinaze® were $177 million in 2019 and are expected to be between $185 million and $215 million in 2020.   The licence with Clinigen represents a significant improvement on commercial terms for PBL who will share in the revenue generated by Clinigen through a tiered royalty in addition to a signature payment of £5 million and milestone payments of up to £20 million.  The new licence with Clinigen will come into effect in January 2021.