Quest Diagnostics has completed the sale of its rights to royalties from commercialization of the drug candidate ibrutinib to Royalty Pharma for $485 million in cash, as part of pharma deals.
The asset purchase is expected to result in after tax cash proceeds of approximately $300 million, before associated pharma deals transaction costs.
The gain associated with the pharma deals will be recorded in the third quarter and will be excluded from adjusted earnings.
As part of pharma deals with the acquisition of Celera in 2011, Quest Diagnostics gained rights to royalties on ibrutinib, an experimental cancer therapy currently in Phase III development by Pharmacyclics and Johnson & Johnson, through its Janssen Biotech subsidiary.
Ibrutinib is an inhibitor of the enzyme Bruton's tyrosine kinase.
Quest Diagnostics continues to retain royalty rights to other clinical indications that result from Celera's drug assets, including programs that target histone deactylase, or HDAC, selective HDAC enzymes and Factor VIIa, as well as other BTK compounds.
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