Bioscience Company Secures Massive $22 Million Royalty Financing
Daré Bioscience Secures $22 Million in Strategic Financing to Propel Women's Health Innovations.
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Daré Bioscience, a leader in women's health innovation, has announced securing $22 million in non-dilutive strategic royalty financing. This infusion of capital is earmarked for the advancement of its Phase 3 first-in-category product candidates, setting a new pace in the realm of women's health care.
The structure of these agreements is a testament to the potential of Ovaprene and Sildenafil Cream. Daré retains the significant majority of future economics, thus positioning the company to achieve attractive margins through retained net sales and all commercial milestones. "This transaction reflects our commitment to being creative and opportunistic in seeking capital at an attractive cost to advance our potential first-in-category Phase 3 candidates to deliver value for all Daré stakeholders," Johnson added. The transaction's intricacies include the sale of the remaining royalties and potential milestones based on net sales of XACIATO payable to Daré under its global license agreement with Organon. It also encompasses 25% of a potential $20 million payment due to Daré under its license agreement with Bayer relating to Ovaprene, in the event Bayer decides to make the payment. Furthermore, there is a synthetic royalty on net sales of Ovaprene and Sildenafil Cream, with rates set to decrease once specific return thresholds are met by XOMA, thereby resulting in a lower effective royalty rate for Daré.
TD Cowen, a division of TD Securities, acted as the exclusive financial advisor to Daré Bioscience on this impactful transaction, with Mintz, Levin, Cohn, Ferris, Glovsky, and Popeo, P.C., serving as Daré’s legal advisor. On the other side, XOMA was advised by Gibson, Dunn & Crutcher LLP. This financial maneuver is set to markedly boost Daré Bioscience's trajectory in bringing groundbreaking women's health solutions to the market. By securing such strategic, non-dilutive financing, Daré underscores its dedication to advancing healthcare innovations that promise to redefine standards in women's health.For further details on this transaction, Daré Bioscience has made information available through its Current Report on Form 8-K filed with the Securities and Exchange Commission today, marking a pivotal step forward in its mission to champion women's health globally.