Capricor Therapeutics, Inc. (CAPR) announced on Tuesday a strategic agreement with Japan's Nippon Shinyaku Co., Ltd., to commercialize and distribute deramiocel in Europe. Deramiocel is a treatment for Duchenne muscular dystrophy, a rare neuromuscular disorder.
As part of the agreement, Capricor will receive a $15 million equity investment at a 20 percent premium and a $20 million upfront payment upon signing the definitive agreement. Additionally, the deal includes up to $715 million in potential milestone payments and a double-digit percentage of product revenue.
“With the upfront payment and equity investment, we will extend our financial runway into 2026. This positions us well to advance towards potential approval of deramiocel in the United States and beyond,” stated Linda Marbán, Chief Executive Officer of Capricor. “These funds will also provide essential capital for commercial launch preparations, manufacturing scale-up, and product development in Europe, where we anticipate high global demand for deramiocel.”
Nippon Shinyaku has also agreed to purchase approximately 2.8 million shares of Capricor’s common stock at $5.36 per share, totaling around $15 million. The offering is expected to close on or about September 20.
Currently, Capricor’s stock is trading at $5.06, up 14.74 percent on the Nasdaq.
