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.
About SWK Holdings Corporation
SWK Holdings Corporation is a specialized finance company with a focus on the global healthcare sector. SWK partners with ethical product marketers and royalty holders to provide flexible financing solutions at an attractive cost of capital to create long-term value for both SWK’s business partners and its investors. SWK believes its financing structures achieve an optimal partnership for companies, institutions and inventors seeking capital for expansion or capital and estate planning by allowing its partners to monetize future cash flow with minimal dilution to their equity stakes. Additional information on the life science finance market is available on the Company’s website at www.swkhold.com.
Onxeo (Euronext Paris, NASDAQ Copenhagen: ONXEO) is a French biotechnology company developing innovative oncology drugs based on DNA-targeting and epigenetics, two of the most sought-after mechanisms of action in cancer treatment today. The Company is focused on bringing early-stage first-in-class or disruptive compounds (proprietary, acquired or in-licensed) from translational research to clinical proof-of-concept, a value-creating inflection point appealing to potential partners.
Onxeo’s R&D pipeline includes belinostat, an HDAC inhibitor (epigenetics) currently being developed in oral form to be used in combination with other anti-cancer agents for liquid or solid tumors. Belinostat is already conditionally FDA-approved in the US as a 2nd line treatment for patients with peripheral T cell lymphoma and marketed in the US by Onxeo’s partner, Spectrum Pharmaceuticals, under the name Beleodaq® (belinostat IV form).
Onxeo is also developing AsiDNA™, a first-in-class DNA break repair inhibitor based on a unique decoy mechanism. AsiDNA™ has already successfully completed a Phase I trial in metastatic melanoma via local administration, and is currently being developed for systemic (IV) administration in solid tumors.
AsiDNA™ is the first compound generated from platON™, the Company’s proprietary chemistry platform of decoy oligonucleotides based on three components, a sequence of double strand oligonucleotides, a linker and a cellular uptake facilitator. PlatON™ will continue to generate new compounds that will broaden Onxeo’s pipeline.
For further information, please visit www.onxeo.com.
Forward looking statements
This communication expressly or implicitly contains certain forward-looking statements concerning Onxeo and its business. Such statements involve certain known and unknown risks, uncertainties and other factors, which could cause the actual results, financial condition, performance or achievements of Onxeo to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. Onxeo is providing this communication as of this date and does not undertake to update any forward-looking statements contained herein as a result of new information, future events or otherwise. For a discussion of risks and uncertainties which could cause actual results, financial condition, performance or achievements of Onxeo to differ from those contained in the forward-looking statements, please refer to the section 184.108.40.206 “Risk Factors” ("Facteurs de Risque") of the 2017 reference document filed with the Autorité des marchés financiers on April 25, 2018 under number D.18-0389, which is available on the Autorité des marchés financiers website (www.amf-france.org) or on the Company’s website (www.onxeo.com).