Nuvation Bio raises $250m for taletrectinib launch

Nuvation Bio has successfully secured a substantial $250 million in non-dilutive financing from Sagard Healthcare Partners. This strategic financial move is aimed at fully funding the commercialization of the cancer therapy taletrectinib in the United States. It is a significant step for Nuvation Bio, as it allows the company to advance its clinical-stage pipeline development without the need for additional capital infusion.

The financing package is comprised of two main components: a $150 million royalty interest financing and a senior term loan of up to $100 million. This arrangement offers Nuvation Bio the potential for profitability while maintaining its existing equity structure.

A crucial aspect of the agreement involves an upfront cash payment of $150 million from Sagard, contingent upon the approval of taletrectinib by the US Food and Drug Administration (FDA) by September 2025. In return for this upfront payment, Sagard will receive tiered royalties based on the therapy's net sales in the US. Specifically, Sagard will earn 5.5% of annual net sales up to $600 million and 3% on sales ranging between $600 million and $1 billion. However, Nuvation Bio will retain all net sales exceeding $1 billion annually. The royalty payments to Sagard are designed to cease once they reach between 1.6 and 2 times the initial investment, depending on the associated timeline.

Additionally, Sagard has agreed to provide a senior secured term loan of up to $100 million, with a five-year term. The first $50 million tranche will be accessible upon FDA approval of taletrectinib, while the second tranche can be drawn until June 30, 2026, provided Nuvation Bio achieves the first commercial sale of taletrectinib in the US market.

The legal and financial aspects of this significant transaction were supported by several advisory firms. Sidley Austin served as the legal advisor to Sagard, while TD Cowen was the financial advisor. Cooley provided legal counsel to Nuvation Bio, ensuring all aspects of the deal were meticulously handled.

David Hung, the CEO, President, and Founder of Nuvation Bio, expressed his enthusiasm about the financing agreement. He emphasized that these funds position Nuvation Bio favorably to launch taletrectinib and continue the development of its clinical-stage pipeline without the requirement of additional external fundraising. Hung acknowledged the support from Sagard, highlighting their shared confidence in the potential of taletrectinib and Nuvation Bio's commitment to improving cancer treatment outcomes for patients.

Furthermore, it is noteworthy that in January 2022, Nuvation Bio received approval from the FDA for its investigational new drug application for NUV-868, which targets advanced solid tumors. This approval marks an important milestone in Nuvation Bio's efforts to expand its therapeutic offerings and contribute to the advancement of cancer treatments.

In conclusion, the substantial financing secured by Nuvation Bio from Sagard Healthcare Partners marks a pivotal moment in the company's journey to bring taletrectinib to the US market. This financial support is anticipated to propel the company's growth and facilitate the development of its promising pipeline, ultimately aiming to enhance cancer treatment solutions for patients in need.