Talphera Announces $26M Capital Commitment Through A Combination Of A Non-Dilutive Royalty Monetization And Equity Offering
Portfolio Pulse from Benzinga Newsdesk
Talphera, Inc. (NASDAQ: TLPH) has announced a $26 million capital commitment to fund the company through potential FDA approval of Niyad™, expected in the first half of 2025. The funding includes $16 million in equity from existing investors Nantahala Capital and Rosalind Advisors, and $8 million from a partial monetization of DSUVIA royalties with XOMA Royalty. The equity offering is structured with $6 million upfront, $10 million upon positive NEPHRO trial data, and $2 million if the stock price reaches a specified level post-trial. Abhinav Jain from Nantahala will join Talphera's Board. The royalty transaction with XOMA involves sharing future DSUVIA royalties and milestones after XOMA receives a specified return.
January 18, 2024 | 1:35 pm
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POSITIVE IMPACT
Talphera receives $26M capital commitment, including $16M equity and $8M from DSUVIA royalties, to support Niyad™ FDA approval process.
The capital infusion is significant for Talphera, providing financial stability and resources to pursue FDA approval for Niyad™. The involvement of existing investors and the addition of a board member from Nantahala suggest strong investor confidence. The non-dilutive nature of the royalty monetization with XOMA is also positive, preserving shareholder value. The news is likely to be viewed positively by the market in the short term.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
XOMA receives $8M return from partial monetization of DSUVIA royalties with Talphera, with future shared royalties and milestones.
XOMA's receipt of $8 million from the royalty monetization deal with Talphera is a positive development, providing immediate capital. The agreement to share future royalties and milestones from DSUVIA sales indicates potential for additional revenue streams. This news may be seen as a positive indicator of XOMA's royalty management strategy and could have a favorable impact on the stock price in the short term.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 70