NEW YORK, June 11, 2018 (GLOBE NEWSWIRE) -- HC2 Holdings, Inc. (NYSE:HCHC), a diversified holding company, announced today that it has completed the sale of BeneVir Biopharm, Inc., a privately-held biotechnology company developing oncolytic immunotherapies for the treatment of cancer, to Janssen Biotech, Inc.
In conjunction with the closing of the transaction, Janssen made an upfront cash payment of $140 million, of which HC2 received approximately $73 million. In addition, assuming no pending or unresolved indemnified claims, HC2 will receive approximately $10 million being held in escrow for fifteen months. Inclusive of additional contingent payments of up to $900 million based on achievement of certain predetermined milestones, the total amount of all payments for this transaction could exceed $1 billion if all milestones are met.
Before its sale to Janssen, BeneVir was a portfolio company within HC2’s Pansend Life Sciences (“Pansend”) subsidiary, led by David A. Present M.D., Founder and General Partner, and Cherine Eldumiati Plumaker, Founder and General Partner. Pansend made its initial investment in BeneVir in 2014, and owned approximately 76 percent of the company’s equity before the sale.
“The sale of BeneVir is a transformational event for both HC2 and Pansend and is a great example of our ability to create value through the innovative Pansend platform,” said Philip Falcone, Chairman, President and Chief Executive Officer of HC2. “David and Cherine identify companies working on exciting and disruptive innovations in the life sciences industry, which we invest in and support with the goal of providing unique solutions for unmet medical needs, while also realizing attractive returns for our shareholders.”
About HC2
HC2 Holdings, Inc. is a publicly traded (NYSE:HCHC) diversified holding company, which seeks opportunities to acquire and grow businesses that can generate long-term sustainable free cash flow and attractive returns in order to maximize value for all stakeholders. HC2 has a diverse array of operating subsidiaries across eight reportable segments, including Construction, Marine Services, Energy, Telecommunications, Life Sciences, Broadcasting, Insurance and Other. HC2’s largest operating subsidiaries include DBM Global Inc., a family of companies providing fully integrated structural and steel construction services, and Global Marine Systems Limited, a leading provider of engineering and underwater services on submarine cables. Founded in 1994, HC2 is headquartered in New York, New York. Learn more about HC2 and its portfolio companies at www.hc2.com.
About Pansend Life Sciences
Pansend Life Sciences, LLC is the life science subsidiary of HC2 Holdings, Inc., focused on the development of innovative healthcare technologies and products. Pansend’s portfolio companies include R2 Dermatology, which is developing medical devices for the treatment of aesthetic and medical skin conditions, and has received FDA approval for its initial device; MediBeacon, whose proprietary platform technology is the foundation of its development of a non-invasive real-time monitoring system for the evaluation of kidney function; Triple Ring, a leading edge research, engineering and development firm which specializes in regulated medical devices, in vitro diagnostics & life sciences tools as well as imaging, and industrial applications; and Genovel Orthopedics, which is developing novel partial and total knee replacements for the treatment of osteoarthritis of the knee.
