Capricor Therapeutics (CAPR) Trading Up Over 15% on Deal with Nippon Shinyaku to Expand Commercialization for Treatment of Duchenne Muscular Dystrophy
Capricor Therapeutics (CAPR) leads the PRISM Emerging Biotech Index today on the announcement that the company has signed a binding term sheet with Japanese pharmaceutical company, Nippon Shinyaku Co., Ltd. for the commercialization and distribution in Europe for Capricor’s lead asset deramiocel which is intended to treat Duchenne muscular dystrophy. Nippon Shinyaku has also agreed to purchase an estimated $15M of Capricor common stock at a 20% premium to the 60 day VWAP.
Under the terms of the binding term sheet, and pending the finalization of a Definitive Agreement expected in the fourth quarter of 2024, Capricor will oversee the development and manufacturing of deramiocel for potential approval across all countries in the European Union, the United Kingdom, and several others in the region. Nippon Shinyaku will handle sales and distribution in these territories. Capricor is set to receive an upfront payment of $20M, contingent on the execution of the Definitive Agreement, with the possibility of additional milestone payments related to development and sales, totaling up to $715M. This upfront payment and investment will extend the company’s cash runway into 2026. Additionally, Capricor will earn a double-digit share of product revenue.
“Our expanded partnership with Nippon Shinyaku into the European region marks a pivotal moment for Capricor as we work together to bring deramiocel to DMD patients worldwide,” said Linda Marbán, Ph.D., Capricor’s Chief Executive Officer. “With the addition of the upfront payment and equity investment, we will be able to extend our runway into 2026 and be well positioned to advance toward potential approval of deramiocel in the United States and beyond. Furthermore, these funds will provide necessary capital for commercial launch preparations, manufacturing scale-up and product development for Europe, as we envision high global demand for deramiocel.”
