Navidea Biopharm. (NAVB) Update Jan 9, 2017

The main focus of this company over the past year was the legal battles with its lender, CRG Capital.  The stock price has suffered over the past year reflecting investor’s trepidation.

With the CEO debacles, the chairman, Michael Goldberg, has taken control of the situation and struggled to move the company past this crisis.

On November 23rd, 2016, it entered into a definitive asset purchase agreement with Cardinal Health to sell its Lymphoseek product for cancer in North America.  In addition, Cardinal Health will license back to Navidea the IP for development and marketing new immunodiagnostic and immunotherapeutic products for specific purposes in North America .  It will allow Navidea to continue to produce and sell Lymphoseek, mostly under a different brand, outside of North America .

In exchange Navidea will receive $80 million at closing, and the opportunity to earn up to $230 million of contingent consideration based on certain milestones through 2026, with $20.1 million of that amount guaranteed over the next 3 years.      

Cardinal will pay to the Navidea the following additional milestone payments upon the achievement by or on behalf of Cardinal of the following milestone events:

• $10,000,000, payable after the first fiscal year ending June 30th in which annual Net Sales exceed $100,000,000

• $15,000,000, payable after the first fiscal year ending June 30th in which annual Net Sales exceed $200,000,000
• $20,000,000, payable after the first fiscal year ending June 30th in which annual Net Sales exceed $300,000,000
• $25,000,000, payable after the first fiscal year ending June 30th in which annual Net Sales exceed $400,000,000
• In no event will the aggregate of all such milestone payments exceed $70,000,000, provided, however, that more than one milestone payment can be earned in the same fiscal year

From Biotech Showcase, 9-11, 2017, San Francisco.

• Sold Lymphoseek business to Cardinal Health;
• stockholder proxy in preparation,
• awaiting SEC approval.
• Macrophage Therapeutics
• “If you can image it, you can treat it”
• Anti-activated macrophages
• CD 206 receptor only present in activated macrophage,
• M1 to M2 conversion
• Deplete activated macrophages as a therapeutic approach
• Active against Zika virus in cell culture studies.