Heidelberg Pharma Secures Up to $115 Million in Royalty Financing from HealthCare Royalty

Heidelberg Pharma AG, a biotech firm focusing on Antibody Drug Conjugates (ADCs), has entered a royalty financing agreement with HealthCare Royalty, promising up to USD 115 million. This deal pertains to the future global sales royalties of Zircaix™ (TLX250-CDx), a diagnostic agent for clear cell renal cancer. Heidelberg Pharma could receive this sum across three near-term payments, pending formal closing conditions.

Zircaix™, initially developed by Heidelberg Pharma, is a radiolabeled antibody used in Positron Emission Tomography (PET) imaging. Licensed to Telix Pharmaceuticals in 2017, its Phase III ZIRCON trial concluded in Q3 2022, with a Biologics License Application submitted to the FDA in December 2023. The agreement specifics include a USD 25 million initial payment, up to USD 75 million upon FDA approval, and a USD 15 million milestone contingent on 2025 sales exceeding set thresholds.

This financial strategy, according to Prof. Dr. Andreas Pahl of Heidelberg Pharma, aims to extend the company’s cash reach significantly, facilitating the acceleration and expansion of their proprietary pipeline. Clarke Futch of HCRx expressed confidence in Zircaix™’s global patient impact potential. The transaction, structured by Morgan Stanley & Co. LLC, will be detailed further in a conference call scheduled for 25 March 2024.