Northwestern sells Lyrica royalty rights for $700M

The USA's Northwestern University has sold a portion of its worldwide royalty interest in Lyrica (pregabalin), a drug for neuropathic pain sold by world drug giant Pfizer, to USA-based Royalty Pharma for $700.0 million in cash. Some of the money to Northwestern will go to the researchers who were responsible for the chemical compound that serves as the basis for Lyrica.

The agent is used to treat nerve pain associated with diabetes and shingles and to help manage pain caused by fibromyalgia. It is manufactured by Pfizer. In third-quarter 2007, turnover of the drug advanced 37% on the comparable period last year to $465.0 million (Marketletter October 29).

Northwestern said that the net proceeds from the partial sale of royalty rights will be placed in the University's endowment and will be used in accordance with federal law to help support financial aid for undergraduate and graduate students; startup costs for the University's research efforts; construction of new buildings and laboratories and improvements to existing facilities; as well as for other purposes.