Theratechnologies touted its financial fitness after closing on a collaboration and licensing deal with EMD Serono, netting a $30 million upfront payment in the process.
"The closing of this transaction solidifies our financial situation to a very comfortable position," said Luc Tanguay, senior executive vice-president and CFO of Theratechnologies. "The upfront payment received today together with the future milestone and royalty payments provide us with a fully-financed business plan through the commercialization of tesamorelin for its first indication in the U.S."
Theratechnologies stands to get up to $215 million in payments on achieving a set of regulatory and sales milestones. And the developer is entitled to receive increasing royalties on annual net sales of tesamorelin in the U.S. EMD Serono announced last October that it had acquired US rights for tesamorelin, a Phase III compound being investigated for the treatment of excess abdominal fat in HIV patients with lipodystrophy.
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