Nicox and Soleus Secure $16.5M Royalty and Equity Financing

Nicox SA, a prominent ophthalmology company based in France, has formalized a significant financial agreement with Soleus Capital Credit Opportunities Fund I, L.P., managed by Soleus Capital Management, L.P., a U.S.-based life sciences investment firm. Under this agreement, Nicox will receive $15 million (€13.7 million) for the sale of its net share of VYZULTA royalties. Additionally, Soleus will invest $1.5 million (€1.37 million) in Nicox shares, issued at €0.3144 per share. This price represents a 20% premium to the closing price of Nicox shares on October 11, 2024, with attached warrants valued at $0.75 million (€0.69 million) at an exercise price of €0.5240 per share, representing a 100% premium to the closing price on the same date.

Soleus will take over all royalties and milestone payments due to Nicox from VYZULTA sales starting from July 1, 2024. Nicox has reached an agreement with its lenders to repay €5.2 million of its principal debt by June 2025, significantly reducing its debt burden. The company projects that this transaction will provide financial support into the third quarter of 2025. As part of the agreement, Soleus will also acquire shares and warrants, with the potential exercise of the warrants bringing in additional gross proceeds.

Gavin Spencer, Chief Executive Officer of Nicox, expressed that this deal allows the company to monetize its VYZULTA revenue stream, creating an immediate source of cash for the development of NCX 470. Spencer highlighted the strategic importance of this transaction, bringing in a specialist investor while securing funds to advance their lead asset, NCX 470. He also mentioned the accelerated recruitment in the Denali Phase 3 clinical trial of NCX 470, with topline results now expected in Q3 2025.

Benjamin Lund, Partner at Soleus Capital, shared enthusiasm about the partnership with Nicox, emphasizing the provision of non-dilutive capital through the VYZULTA royalty monetization and their support as shareholders as Nicox continues to develop and bring NCX 470 to market.

Nicox is an ophthalmology company specializing in developing solutions to maintain vision and improve ocular health. Its lead program, NCX 470, is a novel nitric oxide-donating bimatoprost eye drop in a pivotal Phase 3 trial. Nicox has partnerships with various companies, including Glaukos, Ocumension, and Kowa, and expects to launch ZERVIATE in China soon.

Under the financial terms, Nicox will issue 4,360,256 new shares at a unit subscription price of €0.3144, each accompanied by a warrant. These warrants, which have an exercise price of €0.5240, may be exercised between October 11, 2024, and October 10, 2034. Soleus will hold a 6.36% stake in Nicox post-transaction. The shares and attached warrants will provide Nicox with additional financial resources to continue its development efforts.

Nicox anticipates that this transaction will secure its financing needs until Q3 2025, though it continues to explore additional financing options. NCX 470 is expected to be commercialized in the U.S. through partnerships and is already partnered in China and Southeast Asia with Ocumension, which plans to file a New Drug Application in China following the Denali trial. In Japan, NCX 470 is partnered with Kowa, where additional clinical trials are required.

VYZULTA, a prostaglandin analog, is approved in the U.S. for reducing intraocular pressure in patients with open-angle glaucoma or ocular hypertension and is marketed in over 15 countries. Nicox had previously received royalties from VYZULTA sales, but under the new agreement, Soleus will receive these payments starting from July 1, 2024.

This strategic financial move allows Nicox to reduce its debt and secure necessary funds for ongoing development projects, positioning it for future growth and development in the ophthalmology sector.