HomeInvesting NewsSpringWorks Increases License Agreement With GSK for Myeloma Combination and Receives $75...

SpringWorks Increases License Agreement With GSK for Myeloma Combination and Receives $75 Million in Investment

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With a potential additional $550 million in milestone payments, SpringWorks will receive an equity investment of $75 million.

Nirogacestat’s Entire Global Commercial Rights Will Remain in the Hands of SpringWorks

The clinical-stage biopharmaceutical company SpringWorks, uses a precision medicine strategy to find, create, and market life-changing medications for people with severe rare diseases and cancer.

SpringWorks Therapeutics (NASDAQ:SWTX)

An expanded global, non-exclusive licensing and collaboration agreement for the use of SpringWorks Therapeutics’ (NASDAQ:SWTX) inhibitor nirogacestat in conjunction with GSK’s antibody-drug conjugate Blenrep was announced by the American biopharmaceutical company on Wednesday.

SWTX stock increased 8.2% to $28.13 in morning trade, while GSK shares listed on the American market were practically unchanged. The Stamford, Connecticut-based business said in a statement that SWTX will receive a $75 million equity investment from GSK under the terms of the enlarged agreement, as well as the possibility of receiving up to $550 million in further milestone payments.

SpringWorks will retain Nirogacestat’s full commercial rights, and the inhibitor’s international commercialization will fall within its purview. Multiple myeloma, a malignancy that develops in a particular type of white blood cell, is being treated with the inhibitor in conjunction with GSK’s Blenrep.

The clinical trial partnership and supply agreement between SpringWorks and GSK were initially signed in June 2019; they were later revised in October 2021. Separately, SWTX announced that it has reached a securities purchase agreement with several institutional investors for private placement financing with proceeds of up to $225 million. Institutional investors, including EcoR1 Capital and Deerfield Management, both new and old, are taking part in the funding. 

Following the closure of the private placement financing, which is anticipated to finance operating and capital expenditures through 2026, SWTX stated that it anticipates having more than $600M in cash, cash equivalents, and marketable securities, including GSK’s equity investment.

Featured Image-  Megapixl @Filmpoznan

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