GIAPREZATM (angiotensin II)
Synthetic Royalty® Financing$125 million
ProductGIAPREZATM (angiotensin II)
In December 2017, GIAPREZATM was approved by the U.S. Food and Drug Administration (FDA) to increase blood pressure in adults with septic or other distributive shock. GIAPREZATM mimics the body’s endogenous regulatory peptide that is central to the renin-angiotensin-aldosterone system to increase blood pressure.
After the approval of GIAPREZATM by the FDA in December 2017, La Jolla Pharmaceutical Company (NASDAQ: LJPC) was interested in raising incremental capital to fund its US launch through a non-dilutive financing. Shortly after raising $100 million in equity in March 2018, La Jolla supplemented its cash balance with an incremental $125 million by selling a tiered royalty on future sales of GIAPREZATM to HCR. La Jolla will use the proceeds of the Synthetic Royalty® transaction to fund the US launch of GIAPREZATM, advance other clinical candidates and general corporate purposes. By consummating this transaction, La Jolla was able to raise a considerable amount of capital by leveraging the value of the GIAPREZATM franchise through a sale of a partial royalty, leaving the rest of the capital structure unencumbered.