BioMarin buys preferred shares of La Jolla Pharma - San Francisco Business Times:

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million shares of common stocm — as part of the companies’ recenr development and commercialization deal. Under that agreement, Novato-based BioMarinb (NASDAQ: BMRN) would receive a licensse to develop and commercializeSan Diego-basec La Jolla’s (NASDAQ: LJPC) Riquent, a now-investigational treatment for lupuzs nephritis. La Jolla coulf receive up to $289 million in cash through milestonesx and equity purchasesby BioMarin, the companies said Jan. 6. Upon signin g the deal, the companies said in a press release earlier this month that BioMarihn would pay LaJolla $15 million — $7.5 millioj in cash and $7.5 millionj to buy nearly 3.
4 million preferred sharezs at a per-share price of $2.21171. Thosd shares initially are convertibld at a rate of three shares of commonn stock for every share of equivalent to a common stock priceof 73.7 centa per share. La Jolla stock was tradinbg late Mondayat $1.50 per share, up from a closes of 70 cents on Jan. 5. At each of two interinm efficacy analyses of a Phase III the first expected this quarter and the secondin mid-2009 — BioMarin can exercise its option to fully participatre and share all of Riquent’s losses and profits on a 50-500 basis. Depending on the results of the BioMarin will pay La Jolla up to anadditionapl $47.5 million to $92.
5 million in clinicalo milestone and other payments prior to the drug’s approvaol by the Food and Drug BioMarin could apply up to $20 millionm of the pre-approval clinical milestonesx toward additional purchases of La Jolla preferred Riquent’s Phase III the largest ever conducted in lupus nephritis. If data from the tria is positive, La Jolla could submit a New Drug Applicatiom to the FDA in the first halfof 2010.
Riquen t has fast-track and orphan drug designatiom fromthe FDA, allowing it to be approved faster for a relatively small patient population and with speciall tax and patent protections for the drug developer and Lupus nephritis, characterized by frothy urine as protein leakws from the kidneys, affectz about one-third of people with lupus.