Quest Diagnostics Sells Ibrutinib Royalty Rights To Royalty Pharma For $485 Million In Cash

 Quest Diagnostics Sells Ibrutinib Royalty Rights To Royalty Pharma For $485
                               Million In Cash

Retains royalty rights to odanacatib and other Celera drug assets

PR Newswire

MADISON, N.J. and NEW YORK, July 18, 2013

MADISON, N.J.and NEW YORK, July 18, 2013 /PRNewswire/ -- Quest Diagnostics
Incorporated (NYSE: DGX), the world's leading provider of diagnostic
information services, announced today that it has completed the sale of its
rights to royalties from commercialization of the drug candidate ibrutinib to
Royalty Pharma, the industry leader in acquiring royalty interests in marketed
and late stage biopharmaceutical products, for $485 million in cash.

(Logo: http://photos.prnewswire.com/prnh/20130717/NY48934LOGO )

"This transaction is consistent with our strategy to refocus on our core
diagnostic information services business," said Steve Rusckowski, Quest
Diagnostics President and CEO. "The ibrutinib royalty rights were not core to
our business. After considering interest in ibrutinib, we conducted a robust
market process, and believe that selling now is in the best interests of our
shareholders. We expect to use the proceeds to drive shareholder value,
consistent with our capital deployment strategy."

The sale is expected to result in after tax cash proceeds of approximately
$300 million, before associated transaction costs. The gain associated with
the sale will be recorded in the third quarter and will be excluded from
adjusted earnings.

As part of its acquisition of Celera in 2011, Quest Diagnostics gained rights
to royalties on ibrutinib, an experimental cancer therapy currently in Phase
III development by Pharmacyclics (NASDAQ: PCYC) and Johnson & Johnson (NYSE:
JNJ), through its Janssen Biotech subsidiary. Ibrutinib is an inhibitor of the
enzyme Bruton's tyrosine kinase (BTK).

"We are pleased to have had an opportunity to work with Quest in this win-win
transaction, in which Quest was able to dispose of a non-core asset as part of
its strategic plan and we were able to acquire an interest in ibrutinib, an
exciting potential therapy addressing the needs of patients with chronic
lymphocytic leukemia, small lymphocytic lymphoma and mantle cell lymphoma,"
said Pablo Legorreta, Founder & CEO of Royalty Pharma.

Quest Diagnostics continues to retain royalty rights to other clinical
indications that result from Celera's drug assets, including programs that
target histone deactylase, or HDAC, selective HDAC enzymes and Factor VIIa, as
well as other BTK compounds. In addition, Quest continues to hold the
cathepsin K intellectual property licensed by Celera to Merck for the drug
odanacatib. All of these agreements pertain to drugs that have not yet been
commercialized. Quest Diagnostics has not yet received any royalty payments
related to these programs.

Since the company announced its intention to refocus on the core business last
November, it initiated a disciplined portfolio review that, to date, has
resulted in the disposition of two businesses, including OralDNA, a dental
diagnostics company, and HemoCue, a point of care testing company, as well as
the ibrutinib royalty rights.

About Royalty Pharma

Royalty Pharma is the industry leader in acquiring royalty interests in
marketed and late stage biopharmaceutical products. With over $10 billion in
assets, Royalty Pharma owns royalty interests in 41 marketed and late stage
biopharmaceutical products, including Abbott's Humira®, Johnson and Johnson's
Remicade® and Prezista®, Gilead's Atripla®, Truvada®, Complera® and Emtriva®,
Pfizer's Lyrica®, Amgen's Neupogen® and Neulasta®, Genentech's Rituxan®,
Astella's Lexiscan®, Merck's Januvia/Janumet®, Roche's Mircera®, UCB's Cimzia®
and Biogen Idec's Tecifidera®. Additional company information is available at
royaltypharma.com.

About Quest Diagnostics

Quest Diagnostics is the world's leading provider of diagnostic
informationservices that patients and doctors need to make better healthcare
decisions. The company offers the broadest access to diagnostic testing
services through its network of laboratories and patient service centers, and
providesinterpretive consultation through its extensive medical and
scientific staff. Quest Diagnostics is a pioneer in developing innovative
diagnostic tests and advanced healthcare information technology solutions that
help improve patient care. Additional company information is available at
QuestDiagnostics.com.

CONTACTS:

For Quest Diagnostics:
Dan Haemmerle (investors) at 973-520-2900
Wendy Bost (media) at 973-520-2800

For Royalty Pharma:
Alexander v. Perfall (investors and media) at 212-883-2298
George Lloyd (royalty holders) at 212-883-2275

SOURCE Quest Diagnostics Incorporated; Royalty Pharma

Website: http://www.questdiagnostics.com
 
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