RARE Daily

Marinus Signs $32.5 Million Revenue Interest Financing Agreement with Sagard Healthcare Partners

October 31, 2022

Marinus Pharmaceuticals said that it has entered into a revenue interest financing agreement with Sagard Healthcare Partners for a total of $32.5 million upfront in return for payments based on U.S. net sales of ganaxolone, including the recently approved Ztalmy, ganaxolone oral suspension CV.

Photo: Steven Pfanstiel, chief financial officer of Marinus

“This $32.5 million of non-dilutive capital is expected to provide a meaningful extension of our cash runway into the first quarter of 2024,” said Steven Pfanstiel, chief financial officer of Marinus. “Importantly, this supports continued commercial and R&D investment inclusive of our current Ztalmy launch, as well as our ongoing phase 3 trials in refractory status epilepticus and tuberous sclerosis complex.”

Ztalmy is approved in the United States for the treatment of seizures associated with CDKL5 deficiency disorder in patients two years of age and older. The potential of ganaxolone is also being studied in other rare seizure disorders, including in phase 3 trials in tuberous sclerosis complex and refractory status epilepticus. Ganaxolone is a neuroactive steroid GABAA receptor modulator that acts on a well-characterized target in the brain known to have anti-seizure effects.

Under the terms of the revenue interest financing agreement, Sagard will provide Marinus with an upfront cash payment of $32.5 million in exchange for tiered payments on annual on net sales through the first half of 2026; after that, U.S. net sales of ganaxolone, including Ztalmy, as follows: 7.5 percent 15 percent on net sales less than $100 million annually; and 7.5 percent on net sales greater than $100 million annually, providing an average rate of approximately 10 percent based on current sales forecasts. The total amount payable by Marinus to Sagard is capped at 1.9x of the upfront payment, with the ability to redeem the revenue interest financing agreement at lower multiples within the first four years from funding. Upon achievement of the cap amount, the revenue interest financing agreement will terminate.

Author: Rare Daily Staff

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