Royalty Bond$100 Million
ADS-5102 is a high dose, extended release formulation of amantadine being developed for the treatment of levodopa-induced dyskinesia (LID) in patients with Parkinson’s Disease. At the time of the HCR investment, ADS-5102 was under FDA review and, if approved, would become the first product indicated for this condition. ADS-5102 was granted Orphan Drug Designation. Adamas previously developed NAMZARIC, a fixed dose combination of donepazil and memantine, for the treatment of Alzheimers Disease. NAMZARIC is marketed by Allergan for which Adamas received both milestones and royalty payments.
Adamas Pharmaceuticals Inc. (NASDAQ:ADMS) expressed interest in raising $100 million in non-dilutive capital to fund the commercialization of ADS-5102 for the treatment of LID in people with Parkinson’s disease in the United States. To accomplish its funding needs, Adamas sought to monetize a royalty stream in NAMZARIC, marketed by Allergan, and to structure a royalty (a SYNTHETIC ROYALTY® financing) in ADS-5102. Raising $100 million in a non-dilutive manner allowed Adamas to potentially achieve a large value creating milestone, if ADS-5102 is approved, without raising equity capital. An upfront payment of $35 million occurred at closing and will be followed by a further $65 million upon approval of ADS-5102.