Intercept Pharmaceuticals (ICPT)

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MORRISTOWN, N.J., May 05, 2022 (GLOBE NEWSWIRE) -- Intercept Pharmaceuticals, Inc. (Nasdaq:ICPT), a biopharmaceutical company focused on the development and commercialization of novel therapeutics to treat progressive non-viral liver diseases, today announced it has entered into an agreement to sell to Advanz Pharma, a pharmaceutical company with a strategic focus on specialty and hospital pharmaceuticals in Europe, certain foreign subsidiaries and rights regarding Intercept's international operations, including a license to commercialize Ocaliva(R) (obeticholic acid) outside of the U.S.

"This agreement marks an important step forward for Intercept as the value it brings to our company allows us to significantly strengthen our balance sheet while providing us with greater strategic optionality during this transformational year and beyond," said Jerry Durso, President and Chief Executive Officer of Intercept. "We are committed to investing in our core focus areas in the U.S., including our PBC business, potential future activities in NASH, and our advancing and expanding pipeline. At the same time, we are confident that the strong international team will continue to build on our successful PBC business as they transition to Advanz Pharma."

Upon closing of the transaction:

-- Intercept will receive consideration in the amount of $405 million
upfront, subject to customary working capital and other adjustments. The
company will receive an additional $45 million from Advanz Pharma
contingent upon receipt of an extension of pediatric orphan exclusivity
in Europe.

-- Intercept will receive royalties on any future net sales of obeticholic
acid in NASH outside of the U.S., should Advanz Pharma pursue marketing
authorization for this indication in ex-U.S. regions.

-- Intercept will continue to be responsible for the manufacturing and
supply of obeticholic acid globally and Advanz Pharma will be responsible
for packaging, distribution and commercialization of the therapy in all
markets outside of the U.S.

-- The majority of Intercept employees outside of the U.S. will transfer to
Advanz Pharma. The remaining international employees will continue to
work for Intercept.

-- Intercept will maintain an office in the UK to manage its global supply
chain, support its quality organization, and support its global clinical
trials.