Financing

Intarcia announces $225 million synthetic royalty deal

Posted on 05 May 2015

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Intarcia Therapeutics announced the closing of a $225 million synthetic royalty financing with an equity conversion option at a $5.5 billion Company valuation.

Plans are to use these funds to accelerate the initiation of additional head-to-head comparative and switch studies of ITCA 650 vs. leading oral and injectable type 2 diabetes therapies.

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In addition, proceeds from the financing will fund the expected infrastructure and talent required to launch ITCA 650 in the United States, and to advance the Company’s recently in-licensed pipeline assets.

Under the terms of the deal, investors have purchased Convertible Limited Recourse Notes from Intarcia and are entitled to receive quarterly payments equal to 1.5% of future global net sales of ITCA 650 until the notes mature or are fully paid.

Investors have the option, commencing upon U.S. regulatory approval of ITCA 650 and ending on the later of the second anniversary of the approval or December 31, 2019, to convert their synthetic royalty interests into Intarcia common stock at a conversion price corresponding to an equity valuation of $5.5 billion.

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