Ardelyx To Receive Up To $20 Mln Financing Deal With HealthCare Royalty Partners

(RTTNews) - Biopharmaceutical company Ardelyx, Inc. (ARDX) announced Thursday that the company may receive up to $20 million from HealthCare Royalty Partners from the sale of its future royalties and sales milestones from Kyowa Kirin Co., Ltd., its collaboration partner in Japan for the commercialization of tenapanor for hyperphosphatemia.

HealthCare Royalty Partners funding supports the ongoing launch of IBSRELA in the United States in exchange for future hyperphosphatemia royalty payments from Ardelyx Japanese collaboration partner.

Under the terms of the agreement, Ardelyx will receive from HealthCare Royalty a $10 million upfront payment, an additional $5 million following Kyowa Kirin's receipt of regulatory approval to market tenapanor for hyperphosphatemia in Japan, and $5 million in the event net sales in Japan exceed a certain target level by 2025.

In return, HealthCare Royalty will receive the royalty payments and commercial sales milestones that Ardelyx may earn under the license agreement with Kyowa Kirin.

Ardelyx also has the opportunity to receive up to $85 million in non-dilutive capital based on the potential of tenapanor for hyperphosphatemia in Japan.