Navidea receives $7.5M cash from Cardinal Health in lieu of milestone payment

Navidea Biopharmaceuticals (NAVB) announced that on June 14 it entered into an amendment to the Asset Purchase Agreement, dated November 23, 2016, between the company and Cardinal Health 414, an affiliate of Cardinal Health (CAH). Under the terms of the amendment, Cardinal Health 414 paid the company $7.5M in cash on June 14 and the company waived its right to receive any contingent milestone payment that might otherwise become due and payable under the purchase agreement. “The cash payment from Cardinal Health 414 provides immediate capital for the company’s Phase IIb and Phase III trials and related operations. Building on a history of partnership between the company and Cardinal Health, the amendment also aligns and supports growth goals related to Lymphoseek for both organizations. Prior to entering into the amendment with Cardinal Health 414, the company and Keystone Capital Partners agreed to terminate the letter of intent between them which outlined the material terms of the company’s proposed sale of the Milestone Payment to Keystone for $8M. Supported by G2G Ventures as executive consultants, the company determined that the amendment with Cardinal Health 414 provided greater certainty of closing and accelerated funding without the inclusion of dilutive warrants. Keystone remains a trusted partner of the company and is expected to continue to assist the company in its future financing efforts,” Navidea stated. “The amendment with Cardinal Health and equity line from Keystone Partners offers immediate capital and continuing positive support for Navidea’s pioneering work. This is a great example of how a focused approach can drive the business forward, surface opportunities, strengthen relationships, and create shareholder return,” said Dr. Jason Myers, Owner and Founder of G2G Ventures.