Biogen To Pay $1.25 Bln For Forward Pharma Intellectual Property - Quick Facts

(RTTNews) - Biogen Inc. (BIIB) announced it has agreed to enter into a settlement and license agreement with Forward Pharma, subject to the approval of Forward Pharma's shareholders and other customary conditions. The license agreement will provide Biogen an irrevocable license to all intellectual property owned by Forward Pharma.

Upon the execution and delivery of the License Agreement, Biogen will pay Forward Pharma a non-refundable cash payment of $1.25 billion which will not affect Biogen's 2016 Non-GAAP financial results. Under certain circumstances, Biogen will also be obligated to pay Forward Pharma future royalties on net sales of Biogen products for the treatment of multiple sclerosis that are covered by a Forward Pharma patent and have dimethyl fumarate as an active pharmaceutical ingredient.

"We believe this agreement will clarify and strengthen our intellectual property for TECFIDERA, the leading oral therapy for multiple sclerosis," said Michel Vounatsos, CEO of Biogen.

Shareholders representing approximately 77% of Forward Pharma's voting share capital have irrevocably agreed to vote in favor of the License Agreement. Forward Pharma has agreed to convene an extraordinary general meeting on February 1, 2017 to obtain the approval of its shareholders.