As part of this transaction, Theratechnologies has received an upfront payment of $30 million which includes a license fee of $22 million from EMD Serono and an equity investment of $8 million in Theratechnologies common stock at a price of $3.67 per share by Merck KGaA.
Under the terms of the agreement, Theratechnologies may receive up to $215 million including the upfront payment, and payments based on the achievement of certain development, regulatory and sales milestones. Theratechnologies will also be entitled to receive increasing royalties on annual net sales of tesamorelin in the US.
Luc Tanguay, senior executive vice-president and CFO of Theratechnologies, said: “The closing of this transaction solidifies our financial situation to a very comfortable position. The upfront payment received today together with the future milestone and royalty payments provide us with a fully-financed business plan through the commercialization of tesamorelin for its first indication in the US.”