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Pharmaceutical industry

Somatogen Receives $2 Million Equity Milestone Payment from Eli Lilly and Company

Strategic Insights

— 1 min read

Somatogen, a biopharmaceutical company, has announced the receipt of a $2 million equity milestone payment from Eli Lilly and Company. This payment is related to the completion of enrollment in two early Phase II clinical trials of OptroTM, a recombinant human hemoglobin product. The payment is a significant development in the company's global strategic alliance with Lilly. In a related agreement, Somatogen and Lilly have amended the terms of their alliance, accelerating $7 million of Lilly's equity investment and modifying the termination provisions.

Key Takeaways:

  • Somatogen has received a $2 million equity milestone payment from Eli Lilly and Company related to the completion of enrollment in two early Phase II clinical trials of OptroTM.
  • The payment is a result of the company's global strategic alliance with Lilly, which was announced earlier.
  • The alliance has been amended to accelerate $7 million of Lilly's equity investment, which will be made in five business days after Somatogen's public offering.
  • The amendment also eliminates the March 1996 determination date and combines all remaining milestone investments into a single $7 million equity milestone investment.
  • The termination provisions of the alliance have been modified to provide for payment of certain financial consideration by Lilly to Somatogen in the event of termination under certain circumstances.
  • Somatogen has filed a public offering for 2,500,000 shares of Common Stock.

Statistics:

  • $2 million: the amount of equity milestone payment received by Somatogen from Eli Lilly and Company.
  • $7 million: the amount of equity investment accelerated by Lilly under the amended alliance.
  • 5 business days: the timeframe for Lilly to make the $7 million equity investment after Somatogen's public offering.
  • 2,500,000: the number of shares of Common Stock subject to Somatogen's public offering.

Sources:

  • (BUSINESS WIRE)--Sept. 18, 1995
  • Somatogen, Inc. (Nasdaq National Market:SMTG)

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