Hansa Biopharma announces $70 million finance transaction with NovaQuest
Hansa Biopharma AB, (Hansa), an enzyme technology for rare immunological conditions, announced that the company has entered into an agreement with U.S.-based NovaQuest Capital Management, securing $70 million (£58 million) in non-dilutive financing.
“This transaction, which extends our cash runway through 2024, helps bolster our ability to invest in the continued development of our unique antibody-cleaving enzyme technology platform across multiple therapeutic areas,” said Donato Spota, Chief Financial Officer of Hansa Biopharma.
“The team at Hansa has demonstrated the clinical benefit of imlifidase for enabling kidney transplantation in highly sensitised patients sufficiently to gain EMA approval and appropriate reimbursement in an expanding number of key European countries,” said Brett Fleshman, Managing Director at NovaQuest Capital Management.
“NovaQuest is delighted that Hansa has chosen to fund the ongoing launch in Europe, and US pivotal trials for kidney transplantation and anti-GBM antibody disease through this unique Product Finance transaction.” he continued.
Under the terms of the agreement, NovaQuest will provide Hansa with $70 million within 15 business days from the execution of the agreement. In return, Hansa will make quarterly mid single-digit royalty payments to NovaQuest on future worldwide annual net sales of imlifidase, commencing upon approval by the FDA of imlifidase in kidney transplantation or anti-GBM.
In addition, Hansa will make certain milestone payments to NovaQuest upon FDA approval of imlifidase in kidney transplantation or anti-GBM. Total payments by Hansa to NovaQuest are capped.at $140 million. The agreement also provides for time-based catch-up payments within the payment cap if specified payment amounts have not been received by NovaQuest by specified dates, with the last potential catch-up payment due on December 31, 2028.
In addition, the transaction includes customary diligence, governance, and information obligations as well as non-financial covenants. Hansa and NovaQuest have also entered into a security agreement to provide NovaQuest a customary security interest in and lien upon right, title and interest in certain of Hansa’s assets and IP.
Hansa obtained conditional approval for Idefirix® in Europe in August 2020. Pricing and reimbursement processes have been completed in England, Wales and Northern Ireland, Germany, Sweden and the Netherlands, as well as on an individual hospital basis in Finland and Greece.
In addition, Hansa was granted access in France through a fully reimbursed early access program earlier this year, while Switzerland and Israel, also earlier this year, granted temporary and full marketing authorisation, respectively, for Idefirix®. Additional market access procedures are currently ongoing in 11 countries, including Spain and Italy.