US-based biopharmaceutical firm Nuvation Bio has secured non-dilutive financing of up to $250m from Sagard Healthcare Partners, part of Canada’s Sagard Holdings.
The financing includes a $150m royalty interest financing and a senior term loan of up to $100m.
It aims to support the commercialisation of taletrectinib in the US, contingent on its approval by the US Food and Drug Administration (FDA), and the development of the company’s clinical-stage pipeline.
Upon received the FDA approval for taletrectinib by 30 September 2025, Sagard will provide an upfront cash payment of $150m.
In exchange, Sagard will receive tiered royalties on US net sales of taletrectinib, with 5.5% on sales up to $600m and 3% on sales between $600m and $1bn.
Payments to Sagard will conclude upon reaching certain milestones, including 1.6 times its investment by 30 June 2031, 1.75 times by 30 June 2034, or two times thereafter.
The biopharmaceutical firm will retain all US net sales exceeding $1bn.
Nuvation Bio said the structure of financing offers facilitates potential profitability without additional capital raising.
Nuvation Bio founder, president, and CEO David Hung said: “This transaction is a significant milestone for Nuvation Bio as we prepare to bring taletrectinib to the U.S. market, subject to FDA approval, in mid-2025.
“With these financings, we are well positioned to launch taletrectinib and drive continued development of our clinical-stage pipeline – all without the need for additional fundraising.
“This also improves our flexibility to pursue strategic opportunities to deploy our capital.
“We are thrilled to have support from Sagard and appreciate their shared confidence in taletrectinib and Nuvation Bio as we continue toward our goal of improving outcomes for patients with cancer.”
In addition to the royalty financing, Sagard has committed to a five-year senior secured term loan of up to $100m, with the first tranche of $50m offered upon FDA approval of taletrectinib by 30 September 2025,
The second tranche of $50m will be available at Nuvation Bio’s discretion until 30 June 2026, contingent upon the first US commercial sale of taletrectinib.
TD Cowen served as a financial advisor and Cooley served as a legal advisor to Nuvation Bio, while Sidley Austin served as advisor to Sagard.
Sagard Healthcare partner Raja Manchanda said: “We are excited to partner with Nuvation Bio, an organisation with deep oncology expertise and a commitment to delivering transformative therapies.
“We believe taletrectinib has the potential to redefine the treatment landscape for patients with ROS1-positive non-small cell lung cancer, and we are pleased to provide a structured financing that supports both potential near-term commercialisation and long-term growth.”
