Almirall

Royalty Bond$32.5 Million

Feb 2019

MarketerAlmirall

Seysara™ (sarecycline) is a once-daily, oral tetracycline-derived antibiotic with anti-inflammatory properties for the treatment of inflammatory lesions of non-nodular moderate to severe acne vulgaris in patients 9 years of age and older. Seysara’s marketing rights were licensed to Almirall (previously Allergan), and so Paratek was set to receive royalties based on U.S. net sales. The product was approved in October 2018.

Background

Paratek Pharmaceuticals (NASDAQ:PRTK) was launching antibiotic drug, NUZYRA™, and so was seeking incremental capital to extend the company’s cash runway. Paratek considered it’s royalty in Seysara™ a non-core financial asset rather than a strategic asset. To raise additional capital, Paratek monetized this non-core asset through a royalty financing. The investment was also structured to enable the company to retain upside potential in Seysara™ once the royalty bond is repaid.