GENFIT Secures Up to €185 Million in Non-Dilutive Royalty Financing with HealthCare Royalty
Deal News | Jan 31, 2025 | Goodwin
GENFIT, a late-stage biopharmaceutical company specializing in treatments for rare liver diseases, has entered into a significant non-dilutive capped royalty financing agreement worth up to €185 million with HealthCare Royalty (HCRx). This strategic agreement is aimed at funding the commercialization efforts for GENFIT's drug Iqirvo (elafibranor). The financing includes an upfront payment of €130 million, with the potential for two additional payments of €30 million and €25 million, contingent upon achieving near-term sales milestones. The royalty payments are capped annually based on a maximum net sales level of €600 million. Cumulative payments to HCRx are capped between €277.5 million and €453.25 million depending on certain future events, all with a time-limit set no later than March 31, 2045. Goodwin provided legal counsel to GENFIT for this transaction. This move follows Ipsen acquiring an 8% stake in GENFIT in 2021, reflecting increasing investor confidence in GENFIT's strategic direction and market potential.
Sectors
- Biopharmaceutical
- Finance
- Legal
Geography
- France – GENFIT is headquartered in Lille, France, and it is also listed on the Euronext market in Paris.
- United States – GENFIT has an office in Cambridge, MA, and is listed on the Nasdaq Global Select Market. Additionally, tax advice in the transaction included U.S. considerations.
- Switzerland – GENFIT has a presence in Zurich, indicating its operational geography.
Industry
- Biopharmaceutical – GENFIT operates within the biopharmaceutical industry, focusing on developing treatments and therapies for rare and life-threatening liver diseases.
- Finance – The article discusses a non-dilutive royalty financing agreement involving significant financial structuring, thus the finance industry is relevant.
- Legal – Legal advisory services were crucial in structuring the royalty financing deal, involving firms like Goodwin, highlighting the relevance of the legal industry.
Financials
- €185 million – The total potential value of the non-dilutive royalty financing agreement.
- €130 million – The upfront payment agreed upon in the financing agreement.
- €600 million – The annual maximum net sales figure on which HCRx's royalties are based.
- €277.5 million - €453.25 million – The range of cumulative payments to HCRx, dependent on future event occurrences.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| GENFIT | Biopharmaceutical Company | Company | A late-stage biopharmaceutical company with a focus on rare liver diseases. GENFIT is the target of the royalty financing agreement. |
| HealthCare Royalty (HCRx) | Financing Partner | Company | A healthcare investment firm specializing in royalty-based financing agreements, acting as the financer for the deal. |
| Goodwin | Legal Advisor | Company | A legal firm providing advisory services to GENFIT in the structuring of the financing agreement. |
| Ipsen | Investor | Company | A pharmaceutical company that acquired an 8% stake in GENFIT's capital in 2021. |