Agenus Inc. finalizes transaction terms with Oberland Capital
The funds, which amount to $115 million, will be used to develop the malaria and shingles vaccines, which are part of its immune-oncology programs.
According to the agreement, Oberland Capital will gain the right to receive all of the company’s rights to the global royalties from sales involving GSK’s (GlaxoSmithKline) shingles and malaria prophylactic vaccine products. This only applies to the GSK shingles and malaria products that are comprised of QS-21 adjuvant. This part of the agreement will last until all of the principal and interest of the loan is paid.
"This financing allows us to monetize a significant share of the value of our QS-21 platform while allowing us to retain any upside remaining after the loan terms are satisfied,” Agenus Chairman and CEO Garo Armen said. “This transaction will provide non-dilutive funding towards executing on our strategic and operational goals.”
C. Evan Ballantyne, chief financial officer of Agenus, said the innovative financing structure will strengthen Agenus' balance sheet and position it to advance its robust pipeline.