March 8, 2017 — Navidea Biopharmaceuticals announced the completion of the sale of its Lymphoseek product to Cardinal Health. Navidea received approximately $83 million at closing, and will have the opportunity to earn up to $227 million of contingent consideration based on certain milestones through 2026, with $17.1 million of that amount guaranteed over the next three years.
Lymphoseek is a radiopharmaceutical agent designed for lymphatic mapping, lymph node biopsy and the diagnosis of metastatic spread to lymph nodes for the staging of cancer in North America. Cardinal Health will license a portion of the acquired intellectual property back to Navidea to allow Navidea to develop and sell new immunodiagnostic and immunotherapeutic products for specific purposes in North America, and to continue to produce and sell Lymphoseek, mostly under a different brand name, outside of North America.
As a result of this transaction, CRG has provided a full release of all liens on Navidea’s assets, and all frozen accounts will be transferred back to Navidea control. The unsecured loan from Platinum Partners has been also been repaid.
Post-closing and post-paying off all outstanding notes and transaction-related expenses, Navidea will have $15.6 million in cash and $3.3 million in payables, a large portion of which is tied to the 4694 program which Navidea is seeking to divest in the near term now that the liens have been released.