Lexington, Mass.-based Curis Inc. agreed to sell the rights to a portion of royalties from skin cancer drug Erivedge to Oberland Capital Management LLC for up to $135.7 million.
Under the deal, Curis received $65 million upfront and is expected to receive up to an additional $70.7 million in milestone payments if future royalties exceed certain targets.
In exchange, New York-based Oberland Capital will receive the entire $13.2 million from the first annual royalties due to Curis followed by a 35% portion thereafter. This would exclude a portion of non-U.S. royalties that will be retained by Curis.
Curis said it used certain proceeds from the transaction to retire existing debt, with remaining funds of about $30 million to be used to support its operations.
Erivedge, which is being commercialized by Roche Holding AG, is approved to treat advanced basal cell carcinoma. The disease begins in the basal cells — a type of cell within the skin that produces new skin cells as old ones die off.