Clearside Biomedical Enters Into Non-Dilutive Financing Agreement with HealthCare Royalty Partners for Up to $65 Million
Clearside Biomedical announced it has entered into an agreement with HealthCare Royalty Partners in a deal worth up to $65 million. Clearside intends to use the proceeds from the agreement to support ongoing clinical development of its pipeline, including CLS-AX (axitinib injectable suspension) administered by suprachoroidal injection via Clearside’s SCS Microinjector.
Under the terms of the agreement, Clearside will receive an initial payment of $32.5 million, less certain expenses. At the same time, an additional $12.5 million will be deposited in an escrow account to be released to Clearside upon attainment of a prespecified sales milestone for Xipere (triamcinolone acetonide injectable suspension) for suprachoroidal use. The terms of the agreement also provide for an additional milestone payment of $20 million to Clearside upon attainment of a second prespecified 2024 sales milestone for Xipere.
In exchange for the payments described above, HealthCare Royalty will receive all royalties and milestone payments due to Clearside from Xipere and certain SCS Microinjector license agreements, subject to a cap of 2.5 times the total purchase price paid by HealthCare Royalty under the agreement; the cap may be increased under certain circumstances. The arrangement with HealthCare Royalty specifically excludes all Clearside’s internal development programs, including CLS-AX, as well as any future in-licensed assets.
“The approval and launch of our first commercial product, Xipere, provides the opportunity to access this meaningful non-dilutive capital which adds financial flexibility as we advance our development pipeline,” George Lasezkay, PharmD, JD, Clearside’s President and Chief Executive Officer, said in a company news release. “We are pleased to partner with HealthCare Royalty to support the funding of further clinical trials of CLS-AX, our proprietary small molecule suspension of the tyrosine kinase inhibitor, axitinib, delivered suprachoroidally by our SCS Microinjector.”
“We are pleased to partner with Clearside Biomedical to support their platform delivering therapies to the back of the eye through the suprachoroidal space,” said Clarke Futch, Chairman and Chief Executive Officer of HealthCare Royalty. “Our investment reflects our belief in the strong value of Clearside’s SCS injection platform and XIPERE, the first approved therapeutic delivered into the suprachoroidal space. This underscores our mission to facilitate innovation by high growth biopharmaceutical companies globally.”
Clearside expects to close the transaction in August 2022.