Indevus makes $105M placing

Indevus Pharmaceuticals has closed a private placement to institutional investors of $105.0 million of non-recourse notes, secured by royalties to be paid from sales in the USA of Sanctura and Sanctura XR (trospium chloride). The products are marketed in America by Allergan for the treatment of overactive bladder.

Michael Rogers, chief financial officer of Indevus, said: "with the proceeds from this transaction, we expect to have sufficient cash to retire our outstanding convertible notes, due in July of 2009, and to fund the company's operations into calendar 2010. In addition, once the Notes are repaid, all royalties will revert to Indevus, thereby providing Indevus with a significant participation in the future royalty stream of the product. Importantly, this transaction does not cover royalties on Sanctura XR that we expect to receive on sales in Europe and other territories around the world."