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Highlights
- Nanobiotix signs royalty-based financing deal worth up to $71 million with HealthCare Royalty.
- Agreement includes an upfront payment of $50 million and potential additional funding of $21 million.
- Funding structured to support operational self-sustainability and future development programs.
NANOBIOTIX (NASDAQ:NBTX), a late-stage clinical biotechnology company developing physics-based approaches for cancer and other diseases, announced it has entered into a royalty-based financing agreement with HealthCare Royalty (“HCRx”). The arrangement provides up to $71 million in non-dilutive capital and establishes a financial framework designed to support ongoing operations and future development initiatives.
At closing, Nanobiotix will receive an initial payment of $50 million. An additional $21 million may be released approximately one year post-closing, contingent on meeting certain predefined conditions.
Key Terms of the Financing
Under the terms of the agreement, HealthCare Royalty will receive repayment through a defined portion of royalties on the first $1 billion of net sales, as well as portions of certain regulatory and commercial milestone payments. The repayment is capped at approximately $124 million (1.75x multiple on invested capital) if completed by the end of 2030, and approximately $178 million (2.50x multiple) if completed thereafter, assuming full funding of $71 million.
Following repayment, a “royalty-only tail period” will take effect, during which HCRx will receive a reduced royalty share not exceeding $14.9 million per year. This tail period is set to expire ten years after the first commercial sale of JNJ-1900 (NBTXR3) in the United States.
Payment and repayment obligations under this agreement, as well as under Nanobiotix’s existing royalty arrangement with the European Investment Bank (EIB), will be managed through the transfer of receivables from the JNJ-1900 (NBTXR3) license agreement to a French law trust.
Management Commentary
Bart van Rhijn, Chief Financial and Business Officer at Nanobiotix, stated: “This non-dilutive financing reflects our commitment to preserving long-term shareholder value, while strategically aligning capital to unlock the full potential of our nanotherapeutics platforms. Importantly, this funding provides the resources to advance the company through critical potential milestones that will lead to self-sustainability and durable value creation.”
Partner Statement
Clarke Futch, Chairman and Chief Executive Officer at HealthCare Royalty, said: “We are excited to partner with Nanobiotix at this pivotal stage of its growth. The differentiated nature of their physics-based approach and the compelling clinical profile of JNJ-1900 (NBTXR3) align with our mission of supporting innovative therapies that address areas of significant unmet need. This investment underscores our confidence in this first-of-its-kind approach to cancer treatment, which has the potential to redefine standards of care and establish an entirely new class of therapy.”
