Windtree Eliminates $15M Contingent Liability To Deerfield Management Company
Portfolio Pulse from Benzinga Newsdesk
Windtree Therapeutics, Inc. (WINT) has reached an agreement with Deerfield Management Company to eliminate a $15M contingent liability related to milestone payments for AEROSURF®. In return, Windtree will issue 608,272 shares of common stock and make two $100,000 cash payments to Deerfield. The company believes this strengthens its financial position and simplifies its balance sheet. Windtree's lead asset, istaroxime, is in clinical trials for cardiogenic shock and acute heart failure, with a new license agreement with Lee's Pharmaceuticals.
January 25, 2024 | 1:40 pm
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POSITIVE IMPACT
Windtree Therapeutics has eliminated a significant contingent liability and strengthened its balance sheet by reaching an agreement with Deerfield, which includes issuing shares and cash payments.
The elimination of the $15M contingent liability is a positive development for Windtree as it reduces potential future cash outflows and simplifies the company's financial obligations. Issuing shares and making cash payments are typical in such agreements and are unlikely to have a significant negative impact on the stock price. The news may be viewed positively by investors as it indicates progress in the company's financial management and ongoing clinical trials.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100