Heidelberg Pharma Secures Royalty Financing Deal Worth Up to $115 Million with HealthCare Royalty

Heidelberg Pharma AG, a pioneer in Antibody Drug Conjugates (ADCs) development, has entered into a significant royalty financing agreement with HealthCare Royalty, potentially amounting to up to USD 115 million. The announcement, made on 4 March 2024, marks a pivotal development for Heidelberg Pharma, emphasizing its innovative approach in the biotech landscape, particularly in oncology.

Under the terms of this agreement, HealthCare Royalty will purchase future royalties from global sales of Zircaix™ (TLX250-CDx), a diagnostic agent by Telix Pharmaceuticals for monitoring and diagnosing clear cell renal cancer. This deal not only highlights the potential of Zircaix™ but also underlines the financial confidence in Heidelberg Pharma’s research and development capabilities.

The financial arrangement between Heidelberg Pharma and HealthCare Royalty includes an upfront payment of USD 25 million to Heidelberg Pharma, a subsequent payment of up to USD 75 million contingent upon FDA approval of Zircaix™, and a milestone payment of USD 15 million if certain sales targets are met by 2025. This structured financing will bolster Heidelberg Pharma’s financial position, supporting its continued research in ADC technology and other innovative oncology treatments.

Telix Pharmaceuticals completed a Phase III trial of Zircaix™ in 2022, with a rolling submission for FDA approval announced in December 2023, indicating promising advancements towards its commercialization. Morgan Stanley & Co. LLC acted as the sole structuring agent for this transaction, demonstrating the robust financial strategy behind Heidelberg Pharma’s development efforts.