Hong Kong-based Lee’s Pharmaceutical will advance Windtree Therapeutics up to $3.9 million through the end of October 2017 during negotiations for Lee’s to acquire a controlling interest in Windtree. The first installment of the loan has already been received by Windtree, the company said.
In June 2017, Windtree announced that Lee’s had acquired the rights to develop and commercialize Aerosurf and other inhaled KL4 surfactant products in Asia. The new agreement adds Japan to the territories included in the license and reduces milestone and royalty payments agreed to in the initial deal.
Deerfield Management, which previously loaned money to Windtree for Aerosurf development has agreed to negotiate a restructuring of its loan and is likely to receive cash, shares, and up to $15 million in potential milestone payments.
Windtree President and CEO Craig Fraser said, “After the release of Aerosurf phase 2b data in late June, we worked to secure the required funding to enable the continued advancement of the Aerosurf development program as we prepare for Phase 3, and to bridge us to a potential strategic transaction. If successfully completed, an agreement with Lee’s achieves these objectives in a manner that we believe supports a broader restructuring and materially strengthens the company for long term financial sustainment and a better ability to realize the full potential of Aerosurf and our KL4 surfactant and aerosol delivery platforms. We look forward to sharing our vision and plans for Windtree upon completion of these potential transactions.”
Windtree Senior VP and Chief Financial Officer John Tattory added, “While there is much work to do to finalize the share purchase by Lee’s and resulting retirement of the Deerfield debt, we are excited about the prospect of improving our capital structure and eliminating the financial overhang of long-term debt. We believe this will better position us to raise the additional capital necessary to fund continued development of Aerosurf and our future growth.”
Read the Windtree Therapeutics press release.
