Nuvation Bio has secured $250m in non-dilutive financing from Sagard Healthcare Partners to fully fund the commercialisation of taletrectinib in the US.
The financial move will support Nuvation Bio’s present clinical-stage pipeline development. It offers potential profitability without requiring additional capital raising.
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The financing agreement includes a $150m royalty interest financing and an up-to-$100m senior term loan.
Sagard will offer an upfront payment of $150m in cash to Nuvation Bio contingent on US Food and Drug Administration (FDA) approval of the therapy by September 2025.
In exchange, Sagard will obtain tiered royalties on the therapy’s US net sales. The company will earn 5.5% of annual net sales up to $600m and 3% on sales between $600m and $1bn.
Nuvation Bio will retain complete yearly US net sales exceeding $1bn. Royalty payments to Sagard will stop once they reach between 1.6 and 2 times the initial investment, depending on the date.
Sagard has also committed to an up-to-$100m five-year, senior secured term loan. The first tranche of $50m will be available upon FDA approval of the therapy, and the second tranche is accessible until 30 June 2026, subject to Nuvation Bio’s achievement of the first US commercial sale of taletrectinib.
Sidley Austin served as legal advisor to Sagard. TD Cowen acted as the financial advisor, while Cooley provided legal counsel to Nuvation Bio.
Nuvation Bio CEO, president and founder David Hung stated: “With these financings, we are well positioned to launch taletrectinib and drive continued development of our clinical-stage pipeline — all without the need for additional fundraising.
“We are thrilled to have support from Sagard and appreciate their shared confidence in taletrectinib and Nuvation Bio as we continue toward our goal of improving outcomes for patients with cancer.”
In January 2022, Nuvation Bio received FDA clearance for its investigational new drug application for NUV-868, targeting advanced solid tumours.
