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HLS Therapeutics Announces the Sale of its XENPOZYME® Royalty Interest to DRI Healthcare Trust
HLS Therapeutics Announces the Sale of its XENPOZYME® Royalty Interest to DRI Healthcare Tru...
About this update from Hls Therapeutics, Inc.
[{"type":"text","content":"\n \n \n \n HLS Therapeutics Announces the Sale of its XENPOZYME® Royalty Interest to DRI Healthcare Trust\n \n \n /* Style Definitions */\nspan.prnews_span\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\na.prnews_a\n{\ncolor:blue;\n}\nli.prnews_li\n{\nfont-size:8pt;\nfont-family:\"Arial\";\ncolor:black;\n}\np.prnews_p\n{\nfont-size:0.62em;\nfont-family:\"Arial\";\ncolor:black;\nmargin:0in;\n}\n \n \n \n \n \n \n Canada NewsWire\n \n \n \n \n \n \n \n Total consideration of up to\n \n $45.75 million\n \n , which consists of upfront cash, sales-based milestone payments and DRI Healthcare's assumption of future milestone payment obligations\n \n \n \n \n \n \n HLS will use the upfront cash proceeds to pay down debt\n \n \n \n \n \n \n 2024 revenue and Adjusted EBITDA guidance is updated to reflect effective sale date of\n \n June 28, 2024\n \n \n \n \n \n \n \n \n TORONTO\n \n \n ,\n \n \n July 2, 2024\n \n \n /CNW/ - HLS Therapeutics Inc. (\"HLS\" or the \"Company\") (TSX: HLS), a pharmaceutical company focused on addressing unmet needs in the treatment of psychiatric disorders and cardiovascular disease, announces that it has sold its royalty interest and milestone payment obligations in the global sales of XENPOZYME (olipudase alfa) to DRI Healthcare Trust (\"DRI Healthcare\"), effective\n \n June 28, 2024\n \n . All dollar amounts are in U.S. dollars, unless otherwise stated.\n \n \n The transaction is valued at up to\n \n $45.75 million\n \n , which consists of\n \n $13.25 million\n \n paid upfront in cash,\n \n $14.0 million\n \n in potential sales-based milestone payments and DRI Healthcare's assumption of\n \n $18.5 million\n \n of potential future milestone payment obligations. HLS will recognize revenue from its royalty interest in XENPOZYME through\n \n June 30, 2024\n \n . The upfront proceeds from the sale will be used to reduce the principal outstanding on the Company's term loan. At current rates, the debt repayment is expected to reduce annual interest expense by more than\n \n $1.3 million\n \n .\n \n \n \"To strengthen our balance sheet and focus management efforts on the growth of our product portfolio, we are divesting a non-strategic asset,\" said\n \n Craig Millian\n \n , CEO of HLS. \"With the expectation that HLS would have had to make a substantial milestone payment related to XENPOZ...