The healthcare-focused specialty finance company SWK Holdings Corp. has acquired biotechnology company Enteris BioPharma Inc. from Victory Park Capital Advisors LLC for $21.5 million.
Under the terms of the agreement, SWK Holdings and Victory Park will split proceeds from the Cara Therapeutics Inc. license agreement. Victory Park received $8 million in upfront payment upon execution of the license agreement, while SWK Holdings is set to receive 60% of the first milestone payment and 25% of all other milestone and license-related payments until Victory Park receives a total consideration of $32.8 million. The two entities thereafter will equally split revenues from Cara Therapeutics.
Enteris BioPharma granted Cara Therapeutics a non-exclusive, royalty-bearing license to its oral drug delivery technology product Peptelligence to sell its Oral KORSUVA offering worldwide, excluding Japan and South Korea. Cara Therapeutics paid an upfront fee of $8 million and is also required to make milestone payments and low-single digit royalties based on net sales to Enteris BioPharma.
If Enteris BioPharma's two most advanced 505(b)(2) drug development pipeline products will be out-licensed, SWK Holdings will receive 40% of license or sales proceeds until Victory Park receives $3.0 million per asset. After that, SWK Holdings will receive 70% of all future license proceeds. If the biotechnology company's third most advanced 505(b)(2) product will be out-licensed, SWK Holdings will receive 90% of all proceeds.
In both cases, SWK Holdings, which is a subsidiary of Carlson Capital LP, will receive all manufacturing-related revenues from the drug products. The acquisition was made through unit SWK Acquisition Corp.
