Onxeo Secures $7.5 Million of Non-dilutive Capital from SWK Holdings Corporation Through Sale of Rights related to Future Beleodaq® Royalties
Transaction reinforces Company’s cash position
and proceeds will be fully allocated to the advancement of Onxeo’s pipeline, including its lead product candidate, AsiDNA™
Paris (France), June 7, 2018 – 07h00 am CEST – Onxeo S.A. (Euronext Paris, NASDAQ Copenhagen: ONXEO), (“Onxeo” or the “Company”), a biotechnology company specializing in the development of innovative drugs in oncology, notably against rare or resistant forms of cancer, today announced that it has entered into a royalty agreement with SWK Holdings Corporation, a US life science focused specialty finance company.
Under this agreement, Onxeo will immediately receive $7.5 million through the sale of bonds entitling SWK Holdings Corporation to receive $13.5 million of future royalties and milestones on sales of Beleodaq® (belinostat) in territories licensed to Spectrum Pharmaceuticals, Inc. Further details of the transaction were not disclosed.
Beleodaq® is a histone deacetylase inhibitor (‘HDAC inhibitor’) approved by the US Food and Drug Administration (‘FDA’) in July 2014 to treat refractory or relapsed PTCL. Beleodaq® is currently marketed by Spectrum Pharmaceuticals, Onxeo’s commercial partner in the US.
“We are pleased to have secured this transaction with SWK Holdings, a specialized healthcare investor,” said Nicolas Fellmann, CFO of Onxeo. “This capital will extend our cash runway until early 2020, without any dilution of our shareholders, and help drive the development of our key programs, notably AsiDNA™, through multiple significant inflection points during the next 12 to 18 months.”
“Beleodaq is an important treatment option for patients with refractory or relapsed PTCL,” said Winston Black, CEO of SWK Holdings. “We are pleased to partner with Onxeo on this transaction, helping Onxeo further advance its innovative oncology pipeline for the benefit of patients.”
Torreya Partners LLC acted as financial adviser and Goodwin Procter LLP acted as legal adviser to Onxeo on the transaction.
At March 31, 2018, the Company had €9.2 million in cash, not including the €3.7 million 2017 R&D tax credit that is expected to be received in the coming months.