IntelGenx (OTCQX:IGXT; TSX-V:IGX) has sold its royalty on future sales of Forfivo XL to SWK Holdings for $6-million.
Forfivo XL (bupropion extended release) is the first 450-milligram bupropion hydrogen chloride tablet indicated for major depressive disorder approved by the FDA. Patent protection for Forfivo XL in the U.S. expires in 2027, with an authorized generic entering the market in January 2018.
Under the accord, SWK would receive 100% of royalties as defined in the Edgemont Pharmaceuticals license agreement or similar royalty amounts received on or after April 1, 2016; 100% of the $2-million milestone payment on Edgemont reaching annual net sales of $15-million; and 35% of all potential future milestone payments.
In a statement, Dr. Horst Zerbe, president and CEO of IntelGenx, said the transaction would provide IntelGenx with a non-dilutive source of cash to be used in strengthening the balance sheet
“This is by far the largest influx of capital in the history of the company,” he added. “Our goal is to use the proceeds in advancing our pharmaceutical oral film pipeline, which we believe can bring significant long-term returns to shareholders. We are now completely focused on becoming a global leader in pharmaceutical oral films.”
Winston Black, CEO of SWK Holdings, said the structured purchase reflects the company’s commitment to provide creative financing solutions to life science companies.