Therapeutics Company Announces Royalty Sale For Up To $31.5 Million
Therapeutics Company Announces Royalty Sale For Up To $31.5 Million
Aclaris Therapeutics Announces Sale of OLUMIANT® Royalties and Milestones to OMERS Life Sciences for Up to $31.5 Million.
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On July 19, 2024, Aclaris Therapeutics, Inc. (NASDAQ: ACRS), a clinical-stage biopharmaceutical company focused on developing novel drug candidates for immuno-inflammatory diseases, announced the sale of a portion of its future royalty payments and certain milestones related to OLUMIANT® (baricitinib) to OMERS Life Sciences. This transaction, valued at up to $31.5 million, represents a move by Aclaris to bolster its financial standing and enhance its capability to invest in its diverse drug development pipeline.
Overview of the Transaction
Under the terms of the agreement, Aclaris has received an upfront payment of $26.5 million from OMERS Life Sciences, one of Canada's largest defined benefit pension plans. Additionally, Aclaris stands to receive up to an additional $5.0 million based on the achievement of specific sales milestones for OLUMIANT in 2024. In exchange, OMERS has acquired a portion of the royalties paid by Eli Lilly and Company to Aclaris for worldwide net sales of OLUMIANT used in the treatment of alopecia areata from April 1, 2024, through the remainder of the royalty term under Aclaris' license agreement with Lilly. Furthermore, OMERS will receive 100% of the remaining anniversary milestone payments that Lilly owes Aclaris under the same license agreement.
Dr. Neal Walker, Interim President & CEO and Chair of the Board of Directors of Aclaris, expressed optimism about the impact of this transaction on the company's financial stability and flexibility. "This transaction bolsters our balance sheet and provides us with enhanced financial flexibility to pursue a range of value-creating opportunities while continuing to invest in our internal programs," stated Dr. Walker.
Aclaris' decision to monetize a portion of its future royalties is part of a broader strategy to strengthen its financial position during a period of review. By securing immediate capital, the company aims to support ongoing investments in its internal research and development initiatives, which focus on innovative therapies for patients with unmet medical needs in the realm of immuno-inflammatory diseases.
Aclaris Therapeutics' Pipeline and Focus
Aclaris Therapeutics is known for its robust pipeline of drug candidates targeting various immuno-inflammatory conditions. The company’s R&D efforts are primarily centered around the regulation of protein kinases, which play a crucial role in cellular processes related to these diseases.
Zunsemetinib (ATI-450): A selective MK2 inhibitor currently in clinical trials for rheumatoid arthritis and other inflammatory conditions.
ATI-2138: A dual ITK/TXK/JAK3 inhibitor aimed at treating T-cell mediated diseases, which is still in preclinical development phases.
Other Programs: Aclaris continues to develop additional early-stage candidates addressing a range of immuno-inflammatory targets.
By leveraging its strong R&D foundation, Aclaris aims to bring innovative treatments to market that address gaps in existing therapeutic options for patients with complex immune-mediated diseases. OLUMIANT® (baricitinib) is an oral JAK inhibitor developed by Eli Lilly and Company, initially approved for the treatment of moderate to severe rheumatoid arthritis. It has since been approved for other uses, including alopecia areata, an autoimmune condition characterized by patchy hair loss. The drug's efficacy in treating alopecia areata has provided an important therapeutic option for patients, contributing to its commercial success and relevance in the market.
The sale of OLUMIANT royalties and milestones to OMERS Life Sciences is reflective of a broader trend in the biopharmaceutical industry, where companies seek non-dilutive financing options to support their operations and pipeline development. Non-dilutive financing, including royalty monetization, allows companies to access capital without issuing new equity or incurring debt, thus preserving shareholder value. For Aclaris, this transaction not only provides immediate financial resources but also aligns with its long-term goals. The infusion of capital will enhance Aclaris' ability to fund its pipeline projects, pursue potential acquisitions, and enter into partnerships that can drive future growth.
OMERS Life Sciences' Role and Vision
OMERS Life Sciences, as part of the broader OMERS pension plan, focuses on providing royalty financings and other non-dilutive solutions to biopharma companies and academic institutions. Their mission supports efforts to address unmet medical needs and improve the quality of life for patients globally. By investing in Aclaris' royalty streams, OMERS reinforces its commitment to backing innovative treatments that have the potential to make a meaningful impact on patient outcomes.
OMERS' involvement in this transaction highlights the growing interest from institutional investors in life sciences and biopharma sectors. These investments not only offer attractive financial returns but also contribute to the advancement of critical medical research and the development of new therapies. Aclaris Therapeutics is well-positioned to capitalize on its strengthened balance sheet and continue advancing its pipeline of novel drug candidates. The monetization of OLUMIANT royalties provides the company with the necessary funds to further its research efforts and explore additional opportunities that align with its core mission of addressing immuno-inflammatory diseases.
As Aclaris progresses with its review, the company is expected to remain focused on enhancing its existing drug development pipeline, seeking collaborations, and potentially diversifying its portfolio through acquisitions or partnerships. The ultimate goal is to deliver innovative therapies to patients who lack satisfactory treatment options, thereby improving their quality of life and addressing unmet medical needs.
Disclaimer: The information provided in this article is for educational and informational purposes only and should not be construed as financial or investment advice. Readers are encouraged to perform their own research and consult with professional advisors before making any investment decisions.
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