A global Goodwin team advised Heidelberg Pharma AG (FSE: HPHA), a clinical stage biotech company developing innovative Antibody Drug Conjugates (ADCs), on its royalty financing agreement with Healthcare Royalty (HCRx) for up to $115 million.
Under the agreement, HCRx will acquire Heidelberg Pharma’s royalties on sales of Zircaix™ (TLX250-CDx), a microdose radiopharmaceutical Positron Emission Tomography (PET) imaging agent for the diagnosis and follow up of clear cell renal cancer. Following the receipt by HCRx of a maximum cumulative amount, royalty payments will revert to Heidelberg Pharma and HCRx will receive a low single digit royalty tail percentage thereafter.
In exchange, Heidelberg Pharma will receive a $25 million upfront payment at closing, a milestone payment of up to $75 million payment upon FDA approval of Zircaix™, and a $15 million milestone payment if calendar year 2025 worldwide net product sales of Zircaix™ exceed a certain level.
Heidelberg Pharma is an oncology specialist and the first company to develop the toxin Amanitin into cancer therapies using its proprietary ATAC technology and to advance the biological mode of action of the toxin as a novel therapeutic principle. The proprietary technology platform is being applied to develop the Company’s own therapeutic ATACs as well as in third-party collaborations. Heidelberg Pharma AG is based in Ladenburg, Germany, and is listed on the Frankfurt Stock Exchange.
The Goodwin team in the US was led by Yasin Akbari, Shane Albright, Kris Ring, Daniel Karelitz, Kingsley Taft, Kim Maruncic, Alexandra Haas, Zhe Yang, and Neil Doogan. The German team was led by Markus Käpplinger, Oded Schein, Stephan Kock, Jochen Schnepper, Robert Jochim, Philipp Lauer and Bastian Schmack.