Pharmaceutical conglomerate Ipsen is set to be a beneficiary of Radius Health’s flotation, despite never investing money in the company, it has emerged. According to a source within Ipsen, Ipsen did not invest any cash in Radius directly, but took an equity share worth about 1% in Radius in lieu of a milestone payment worth €1m ($1.3m). The payment was for a Radius compound known as BA058, to treat osteoporosis, and which is now the basis for the two products leading Radius’ pipeline. The compound was acquired in 2005 from Ipsen, and which has now reached Phase 3 clinical trials, triggering the payment. Without an income flow, the firms negotiated an equity payment instead. Ipsen will retain a royalty on any future sales connected to drugs developed from BA058. The current market leader in osteoporosis drugs, Forteo, has reportedly racked up sales between $800m and $1bn. As for the outcome of its stake, Ipsen has no firm plans, and is waiting for the outcome of Radius’ IPO, which could raise up to $86m, before coming to any decision.    

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