DALLAS, Feb. 9, 2022 /PRNewswire/ -- SWK Holdings
Corporation (Nasdaq: SWKH) ("SWK" or the "Company"), a life science
focused specialty finance company catering to small- and mid-sized
commercial-stage companies, today provided an update on the
progress and achievements of its portfolio and partner companies
during the second half of 2021 and recent weeks.
"We are encouraged by the latest additions to our royalty and
debt portfolio as well as the progress reported by our partner
companies," stated Winston Black, Chairman and CEO of SWK.
"2022 is shaping up to be an exciting year for SWK and we are
targeting to return our new deal origination to historical levels
during the coming year. The recent financings to MolecuLight and
Biotricity demonstrate SWK remains a partner of choice for emerging
life science companies. We also believe the recent market
volatility may create additional opportunities to partner with
innovative companies that value the non-dilutive nature of our
financial structures."
SWK Holdings provides funding that supports growth opportunities
for small and mid-sized life sciences companies through the
creation of unique financing structures. These deals include
structured debt, traditional royalty monetization, synthetic
royalty transactions, and asset purchases, and typically range in
size from $5.0 million to $20.0 million, a market
segment often ignored by other structured finance companies.
Mr. Black continued, "We are also gratified with the progress at
our subsidiary, Enteris BioPharma. Having completed the expansion
of the company's manufacturing facility in Boonton, NJ, CEO Rajiv
Khosla and his team announced in May
2021 the launch of its CDMO business segment and continue to
pursue business development opportunities for the
Peptelligence® and ProPerma® technologies.
The partnership with Cara Therapeutics is progressing as
illustrated by the recently announced $5.0
million milestone payment from Cara for the ongoing
development of Oral KORSUVA™, which utilizes Enteris' Peptelligence
technology. Oral KORSUVA is now the subject of four separate
clinical programs, including an anticipated Phase 3 trial for the
treatment of pruritus in patients with stage III-IV chronic kidney
disease. We anticipate additional milestone payments over the next
several quarters, subject to the achievement of development
milestones."
Enteris BioPharma, Inc.
In August 2019, SWK
acquired Enteris BioPharma, a biotechnology company developing
innovative oral formulations of hard-to-dose peptide- and small
molecule-based therapies built around its proprietary drug delivery
technologies, Peptelligence and ProPerma.
- Enteris' work with Cara Therapeutics on its first-in-class KOR
agonist, CR845, commonly known as Oral KORSUVA continued to
progress.
-
- December 2021, Enteris received a
$5.0 million payment, of which
Enteris was entitled to keep $3.0
million pursuant to the terms of SWK Holdings' acquisition
of Enteris. It was the second milestone payment announced in 2021,
following a $10.0 million payment in
June.
- Since license inception, Enteris has received $28.0 million of payments from Cara. Of the
$20.0 million of payments received
subsequent to SWK's acquisition of Enteris in 2019, $9.9 million was retained by Enteris.
- Cara has publicly guided towards initiating a Phase 3 program
in the first quarter of 2022 investigating Oral KORSUVA as a
treatment for pruritis in patients with atopic dermatitis (AD), as
well as initiating a registration program in the first quarter of
2022 consisting of two pivotal Phase 3 clinical trials
investigating Oral KORSUVA for the treatment of non-dialysis
dependent chronic kidney disease (CKD).
- Additionally, Cara stated that it expects to report top-line
data from an ongoing Phase 2 clinical trial evaluating Oral KORSUVA
as a treatment for pruritis in patients with hepatic impairment due
to primary biliary cholangitis (PBC).
Transactions Completed During Fourth Quarter of 2021
Moleculight, Inc.
In January
2022, SWK provided $10.0
million in senior secured debt to MolecuLight, Inc., a
privately-owned medical imaging company that has developed and is
commercializing a proprietary fluorescent imaging platform
technology for real-time detection of wounds containing
elevated bacterial loads. MolecuLight plans to use the funding to
support its global commercial expansion.
Biotricity Inc.
On December 22,
2021, SWK closed a $12.0
million senior secured debt financing with Biotricity Inc.
(NASDAQ: BTCY), a medical technology company developing innovative,
remote biometric monitoring solutions. Biotricity intends to use
the funding to repay existing debt and support the growth of the
company's remote patient monitoring solutions.
SWK Holdings Portfolio Updates
4Web, Inc.
4Web is a privately held medical device
company, based in Frisco, TX, which utilizes a proprietary
truss implant technology to develop and market spinal implants.
In June 2019, 4Web entered a $20.0
million structured credit agreement with SWK Holdings which
was amended in May 2021 with SWK
advancing an additional $2.25 million
to support the company's ongoing growth. That same month, 4Web
launched its FDA-approved lumbar spine plating solution onto the
U.S. market.
- In August 2021, 4Web announced it
had exceeded growth projections for the second quarter ended
June 30, 2021, driven by new product
launches, expansion of distribution partners, and converting new
surgeon users. Revenue generated during the quarter rose 95%
compared to the same period in 2020 and 20% compared to the
previous quarter.
Acerus Pharmaceuticals
Acerus Pharmaceuticals is a
Canadian specialty pharmaceutical company with a flagship
commercial product Natesto® for the treatment of men with low
levels of endogenous testosterone. Acerus entered an $11.0
million structured credit agreement with SWK Holdings
in October 2018. A series of transactions with First
Generation Capital Inc. completed in 2020 provided additional
capital for Acerus to realize its U.S. growth strategy. In
conjunction with these transactions, SWK amended the Acerus credit
facility to reset covenants to better reflect the current nature of
Acerus' business.
- In December 2021, SWK consented
for a second time to amend its loan agreement with Acerus. At the
same time, Acerus increased its subordinate loan facility with
First Generation Capital Inc. from $15.0
million to $25.0 million.
Biolase, Inc.
Biolase, Inc. is a global leader in
dental lasers. In November 2018, Biolase entered a $15.0
million structured credit arrangement with SWK Holdings.
- In January 2022, Biolase said it
expects to report revenue for the fourth quarter ended December 31, 2021, totaling $12.2 million to $12.5
million, a 44% to 47% increase over the same period in 2020,
and a 20% to 23% increase over the pre-pandemic revenues generated
during the fourth quarter of 2019.
Eton Pharmaceutical
Eton Pharmaceutical is a specialty
pharmaceutical company focused on developing innovative products
utilizing the FDA's 505(b)(2) regulatory pathway. In November
2019, Eton entered a $10.0 million structured credit
agreement with SWK, which was amended in August 2020 to
increase the facility size to $15.0 million.
- In November 2021, Eton
Pharmaceuticals and Azurity Pharmaceuticals announced the FDA
approval of EPRONTIA™, the first oral liquid formulation of the
seizure medication topiramate to be approved for use in the U.S.
Eton will receive a $5.0 million
milestone payment upon EPRONTIA's commercial launch, a royalty on
net sales, and potential commercial milestones.
- In December 2021, Eton and ANI
Pharmaceuticals announced the commercial launch of Carglumic Acid
Tablets, the first and only FDA-approved generic version of
Carbaglu® indicated to treat hyperammonemia. Eton acquired
marketing rights to the tablets in October
2021, shortly after they received FDA approval.
Keystone Dental, Inc.
Keystone Dental, Inc. is
believed to be the largest independently operated dental implant
company in North America. In May 2016, the company
entered a $20.0 million structured credit agreement with
SWK Holdings. In 2019, Keystone Dental agreed to merge via a
stock-for-stock transaction with Paltop Advanced Dental Solutions,
creating a global dental implant player estimated to have
nearly $50.0 million in combined annual revenue.
- On September 1, 2021, Keystone
announced the closing of a $25.0
million financing round led by Nantahala, with participation
from Accelmed, and Accelmed's anchor investor, Migdal
Insurance.
- Concurrently, Keystone also announced the acquisition of Osteon
Medical, a commercial-stage dental implant company, which was
funded by the financing round.
Misonix
In September 2019, Misonix, a minimally
invasive therapeutic ultrasonic medical devices provider, acquired
Solsys Medical, LLC, a privately held regenerative medicine
company. Misonix assumed Solsys' credit facility with SWK Holdings.
Following the acquisition, SWK upsized its credit facility with
Misonix to $30.0 million to support the company's growth
objectives.
- On October 29, 2021, Bioventus
Inc. (Nasdaq: BVS) announced the completion of its acquisition of
Misonix. The cash-and-stock transaction, formally announced in July
of 2021, valued Misonix at approximately $518.0 million on a fully diluted basis. The SWK
loan was paid off in conjunction with Misonix's sale.
Sincerus
As a 503B compounding pharmacy,
Sincerus provides customized prescription medicines to
dermatologists for private labeling and dispensing at the point of
care. During the first half of 2021 Sincerus closed a $9.0 million financing with SWK.
Subsequently, Sincerus accessed an additional $750,000 to support its continued growth, and
achieved a sales milestone that allowed the company to access a
final $1.9 million tranche.
- In September 2021, Sincerus
Pharmaceuticals announced plans for a multi-million-dollar capital
investment in a new, state-of-the-art, 40,000-square-foot facility
that will house a complete FDA-regulated 503B outsourcing facility for pharmaceutical
manufacturing and research and development.
Trio Healthcare
Founded in 2006, Trio Healthcare Ltd.
is a UK-based company that develops and manufactures ostomy
products. SWK first funded Trio in October
2020.
- In July 2021, Trio secured a
second round of funding from SWK totaling $10.0 million to support the company's
international expansion and the global roll-out of its stoma bag,
Genii™.
- Following its latest financing from SWK, Trio significantly
increased investment into its R&D teams, doubling headcount,
while also expanding its Skipton manufacturing facilities.
- In September 2021, Trio opened an
office in Princeton, NJ marking
the first time the company will have a direct sales presence in the
U.S. ostomy market, currently valued at $1.5
billion and home to more than 725,000 people living with a
stoma.
Veru Inc.
Veru Inc. is a biopharmaceutical company
focused on medicines for the management of breast and prostate
cancer. Through Veru's Female Health Company division, the company
also markets the FC2 "female condom." In 2018, Veru completed
a $10.0 million "synthetic royalty financing" on FC2 sales
with SWK.
- In December 2021, Veru announced
a 71% year-over-year increase in FC2 prescription net revenues for
the 2021 fiscal year ended Sept. 30,
2021. Full-year revenue totaled $46.5
million compared to $27.1
million during the previous fiscal year.
About SWK Holdings:
SWK Holdings Corporation is a
specialized finance company with a focus on the global healthcare
sector. SWK partners with ethical product marketers and royalty
holders to provide flexible financing solutions at an attractive
cost of capital to create long-term value for both SWK's business
partners and its investors. SWK believes its financing structures
achieve an optimal partnership for companies, institutions and
inventors seeking capital for expansion or capital and estate
planning by allowing its partners to monetize future cash flow with
minimal dilution to their equity stakes. SWK also owns Enteris
BioPharma, whose Peptelligence® and ProPerma® drug
delivery technologies create oral formulations of peptide-based and
BCS class II, III, and IV small molecules. With Enteris, SWK has
the opportunity to grow its specialty finance business by actively
building a wholly-owned portfolio of milestones and royalties
through licensing activities. Additional information on the life
science finance market is available on the Company's website at
www.swkhold.com.
Safe Harbor Statement
This press release contains
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Statements including
words such as "believes," "expects," "anticipates," "intends,"
"estimates," "plan," "will," "may," "look forward," "intend,"
"guidance," "future" or similar expressions are forward-looking
statements. Because these statements reflect SWK's current views,
expectations and beliefs concerning future events, these
forward-looking statements involve risks and uncertainties.
Investors should note that many factors, as more fully described
under the caption "Risk Factors" and elsewhere in SWK's Form 10-K,
Form 10-Q and Form 8-K filings with the Securities and Exchange
Commission and as otherwise enumerated herein, could affect the
Company's future financial results and could cause actual results
to differ materially from those expressed in such forward-looking
statements. The forward-looking statements in this press release
are qualified by these risk factors. These are factors that,
individually or in the aggregate, could cause the Company's actual
results to differ materially from expected and historical results.
You should not place undue reliance on any forward-looking
statements, which speak only as of the date they are made. We
assume no obligation to publicly update any forward-looking
statements, whether as a result of new information, future
developments or otherwise.
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SOURCE SWK Holdings Corporation