Pfizer

Royalty Monetization$290 Million

Aug 2013

MarketerPfizer

LYRICA® is one of Pfizer’s largest product and generates over $4 billion in sales annually. The oral small molecule drug was developed for the treatment of neuropathic pain. It treats two of the most common forms of nerve pain – diabetic peripheral neuropathy and post-herpetic neuralgia – as well as a broad range of other disorders including fibromyalgia.

Background

Northwestern University, through their financial advisor Morgan Stanley, sought to divest a portion of their royalty in Pfizer’s market leading pain drug, LYRICA®. LYRICA® had been licensed to Pfizer many years ago, after it was discovered by Northwestern’s Professor Richard Silverman. Having monetized a portion of the LYRICA® royalty many years prior, the University once again looked to raise substantial funds from the remaining royalty as a means of risk mitigation and efficient capital raising. Ultimately, Northwestern University partnered with HCR and Canada Pension Plan Investment Board (“CPPIB”) in a $290 million royalty sale.

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