Aclaris Therapeutics Sells OLUMIANT® Royalties and Milestones to OMERS Life Sciences for $31.5 Million

Aclaris Therapeutics, Inc. has announced a significant financial transaction aimed at enhancing its financial flexibility and supporting its strategic priorities. The clinical-stage biopharmaceutical company, known for developing innovative treatments for immuno-inflammatory diseases, has sold a portion of its future royalty payments and certain milestones related to the drug OLUMIANT® to OMERS, one of Canada’s largest pension plans.

Under the terms of the agreement, Aclaris has received an upfront payment of $26.5 million and has the potential to earn an additional $5.0 million if certain sales milestones for OLUMIANT are achieved in 2024. In return, OMERS has acquired a portion of the royalty payments made by Eli Lilly and Company to Aclaris for the worldwide sales of OLUMIANT from April 1, 2024, onward, as well as 100% of the remaining anniversary milestone payments under the license agreement.

Dr. Neal Walker, Interim President & CEO and Chair of the Board of Directors of Aclaris, expressed optimism about the transaction, stating that it strengthens the company's balance sheet and provides greater financial flexibility. This financial boost allows Aclaris to continue investing in its internal programs while exploring a range of value-creating opportunities that align with its growth strategy.

OLUMIANT® is a registered trademark of Eli Lilly and Company and is used in the treatment of alopecia areata, an autoimmune condition causing hair loss. The transaction with OMERS allows Aclaris to monetize a portion of its future royalties from OLUMIANT, thus securing immediate capital to fund its ongoing research and development efforts.

Cantor Fitzgerald & Co. served as the financial advisor for Aclaris in this transaction, while DLA Piper LLP (US) acted as legal advisor. OMERS was represented by Davies Ward Phillips & Vineberg LLP.

Aclaris Therapeutics, Inc. is advancing a robust pipeline of drug candidates targeting immuno-inflammatory diseases through a comprehensive R&D engine focusing on protein kinase regulation. The company aims to address the unmet needs of patients who have limited treatment options.

OMERS Life Sciences, a division of the large Canadian pension plan, specializes in providing royalty financing and other non-dilutive solutions to biopharmaceutical companies and academic institutions. Their goal is to support the development of treatments that address unmet medical needs and improve patient quality of life globally. OMERS itself is a defined benefit pension plan with a diverse portfolio of investments spanning various asset classes, including public and private equities, infrastructure, and real estate. The organization operates internationally, with teams based in major cities across North America and Europe.

The transaction between Aclaris and OMERS marks a strategic move for both entities. For Aclaris, it secures the necessary funds to advance its drug development pipeline, while OMERS gains a valuable stake in the future success of OLUMIANT sales. This partnership exemplifies how biopharmaceutical companies and financial institutions can collaborate to foster innovation and bring new treatments to market.

Overall, this deal positions Aclaris to continue its mission of developing novel therapies for patients with immuno-inflammatory diseases, leveraging the financial support from OMERS to propel its strategic initiatives forward.