FibroGen Announces $50 Million Royalty Monetization Financing with NovaQuest Capital Management
November 07 2022 - 4:00PM
FibroGen, Inc. (NASDAQ: FGEN) today announced a royalty
monetization financing with NovaQuest Capital Management
(NovaQuest) that will result in proceeds to FibroGen in the amount
of $50 million, bringing non-dilutive capital to drive innovation
and growth.
NovaQuest is a strategic financial partner that is aligned with
the company's growth ambitions and demonstrates confidence in the
anticipated commercial opportunity and launch performance of
EVRENZO™. The financing provides capital to expand and advance the
company's wholly-owned late-stage pipeline toward
commercialization.
“This transaction reflects the meaningful value roxadustat can
generate in the territories partnered with Astellas, and FibroGen’s
ability to execute a non-dilutive transaction to strengthen our
balance sheet," said Enrique Conterno, Chief Executive Officer,
FibroGen. "Part of the proceeds will be used to further fund our
wholly-owned pamrevlumab program, as we anticipate multiple pivotal
Phase 3 readouts in 2023 and 2024. Executing this deal in the
current market environment speaks to the quality of the assets and
the aligned confidence in the commercial opportunity of
EVRENZO™ by NovaQuest Capital Management."
The deal includes the following terms:
- $50 million cash upfront in exchange
for 22.5% of future EVRENZO™ royalties in the territories
partnered with Astellas – Japan, Europe, and certain other
territories.
- The aggregate payments to be
received by NovaQuest Capital under this Agreement are capped at
certain fixed multiples of the upfront payment based upon time.
Once NovaQuest receives an aggregate of either:
- $100 million (2.0x the upfront) by
the end of 2028, or
- $112.5 million (2.25x the upfront)
by the end of 2029, or
- $125 million (2.50x the upfront) by
the end of 2030,
the Agreement will expire resulting
in FibroGen retaining all subsequent EVRENZO™ royalties.
“NovaQuest is excited to utilize its differentiated Product
Finance solution and support FibroGen in creating innovative,
first-in-class medicines for chronic and life-threatening
conditions by leveraging patients’ natural pathways,” said Ryan
Wooten, Managing Director at NovaQuest. “We look forward to
FibroGen continuing to execute on their pipeline and delivering new
therapeutics to the global patient community.”
Morgan Stanley & Co. LLC acted as the sole structuring agent
and Goodwin Procter LLP acted as counsel to FibroGen. Wyrick
Robbins Yates & Ponton LLP acted as counsel to the
investor.
About FibroGen FibroGen, Inc. is a
biopharmaceutical company committed to discovering, developing, and
commercializing a pipeline of first-in-class therapeutics. The
Company applies its pioneering expertise in connective tissue
growth factor (CTGF) biology and hypoxia-inducible factor (HIF) to
advance innovative medicines for the treatment of unmet needs.
Pamrevlumab, an anti-CTGF human monoclonal antibody, is in clinical
development for the treatment of idiopathic pulmonary fibrosis
(IPF), locally advanced unresectable pancreatic cancer (LAPC),
metastatic pancreatic cancer, and Duchenne muscular dystrophy
(DMD). Roxadustat (爱瑞卓®, EVRENZO™) is currently approved in China,
Europe, Japan, and numerous other countries for the treatment of
anemia in CKD patients on dialysis and not on dialysis. Roxadustat
is in Phase 3 clinical development in the U.S. and Europe for
anemia associated with myelodysplastic syndromes (MDS), and in
Phase 3 clinical development in China for treatment of
chemotherapy-induced anemia (CIA). FibroGen recently expanded its
research and development portfolio to include product candidates in
the immuno-oncology and autoimmune space. For more information,
please visit www.fibrogen.com.
About NovaQuest Capital ManagementNovaQuest
Capital Management, located in North Carolina’s Research Triangle,
is a life science investment firm with a specialization in
biopharmaceuticals. Founded in 2010, and with more than $2.5
billion raised across four funds, NovaQuest provides tailored
capital solutions that fund innovation in biopharmaceutical
development and invests in compelling healthcare companies with
products and technologies aimed at helping humans and animals live
healthier, longer, more productive lives. Learn more at
www.novaquest.com.
Forward-Looking Statements This
release contains forward-looking statements regarding the
indications and potential markets in which FibroGen is pursuing its
strategy, future plans and prospects, including statements
regarding the development and commercialization of the company’s
product candidates, and our clinical programs, the benefits that
FibroGen expects to obtain from the financing transaction, the
expected closing and funding dates of the financing transaction,
and the expected use of proceeds from the financing transaction.
These forward-looking statements include, but are not limited to,
statements about the company’s plans, objectives, representations
and contentions and are not historical facts and typically are
identified by use of terms such as “may,” “will,” “should,” “on
track,” “could,” “expect,” “plan,” “anticipate,” “believe,”
“estimate,” “predict,” “potential,” “continue” and similar words,
although some forward-looking statements are expressed differently.
Actual results may differ materially from those indicated in these
forward-looking statements due to risks and uncertainties related
to the continued progress and timing of the company’s various
programs, including the enrollment and results from ongoing and
potential future clinical trials, and other matters that are
described in the company’s Annual Report on Form 10-K for the
fiscal year ended December 31, 2021 and its Quarterly Report on
Form 10-Q for the quarter ended September 30, 2022, each as filed
with the Securities and Exchange Commission (SEC), including the
risk factors set forth therein. Investors are cautioned not to
place undue reliance on these forward-looking statements, which
speak only as of the date of this release, and FibroGen undertakes
no obligation to update any forward-looking statement in this press
release, except as required by law.
Contacts:FibroGen, Inc.
Investors:Michael Tung, M.D.Corporate Strategy
/ Investor Relations415.978.1434mtung@fibrogen.com
Media:Meichiel KeenanInvestor Relations and
Corporate Communicationsmkeenan@fibrogen.com
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