Business
Atara Biotherapeutics Announces $31 Million Royalty Interest Financing Agreement with HealthCare Royalty
HealthCare Royalty Receives Specified Milestones and Royalties for EbvalloTM in Europe in Exchange for Upfront Cash Payment to Atara Non-Dilutive Funding
About this update from Atara Biotherapeutics, Inc.
[{"type":"text","content":"\nHealthCare Royalty Receives Specified Milestones and Royalties for EbvalloTM in Europe in Exchange for Upfront Cash Payment to Atara\n\nNon-Dilutive Funding Further Extends Atara’s Cash Runway\n\nIncremental to $40 Million of Existing Milestones from Pierre Fabre Following EbvalloTM Marketing Authorization Approval and Filing for Application Transfer\n\n THOUSAND OAKS, Calif.--(BUSINESS WIRE)--\nAtara Biotherapeutics, Inc. (Nasdaq: ATRA), a leader in T-cell immunotherapy, leveraging its novel allogeneic Epstein-Barr virus (EBV) T-cell platform to develop transformative therapies for patients with cancer and autoimmune diseases, has entered into a royalty interest financing agreement totaling $31 million with HealthCare Royalty (HCRx) for Ebvallo™ in Europe and other territories covered by Atara’s commercialization agreement with Pierre Fabre.\n\n“This strategic deal with HCRx, a top-tier investment firm, contributes to Atara’s financial position and reflects our positive momentum following the recent European Commission approval of Ebvallo™ as the only approved therapy for EU patients with a rare and potentially deadly cancer,” said Pascal Touchon, President and Chief Executive Officer of Atara. “We share HCRx’s confidence in Ebvallo™ and a vision of bringing a first ever allogeneic T-cell therapy to market in collaboration with our European commercialization partner Pierre Fabre.”\n\nUnder the terms of the agreement, Atara will receive a $31 million upfront payment from HCRx. In exchange, HCRx will receive rights to specified royalties and milestones under the Pierre Fabre commercialization agreement for Europe and other territories. The total royalties and milestones payable to HCRx are capped between 185 percent and 250 percent of the total investment amount by HCRx, dependent upon the timing of such royalties and milestones.\n\nAdditionally, Atara retains existing milestone payments from Pierre Fabre of $10 million for Ebvallo™ approval in Europe and $30 million for Atara’s initiation of the EU Marketing Authorization Application transfer to Pierre Fabre from the previously announced commercialization agreement and subsequent update announced in September 2022.\n\n“We are proud to support Atara and have strong confidence in their mission of helping transform the lives of cancer and autoimmune patients through pioneering in...