Chiasma Enters Into Revenue Interest Financing Agreement for up to $75 Million with Healthcare Royalty Partners

NEEDHAM, Mass., April 08, 2020 (GLOBE NEWSWIRE) -- Chiasma, Inc. (NASDAQ: CHMA), a clinical, late-stage biopharmaceutical company focused on improving the lives of patients with rare and serious chronic diseases, today announced its entry into a revenue interest financing agreement with HealthCare Royalty Partners (HCR) for up to $75 million to support the ongoing development and planned commercial launch of its investigational octreotide capsules product candidate, trade-named MYCAPSSA, for the maintenance treatment of adults with acromegaly.

Under the terms of the agreement, Chiasma will receive $25 million from HCR on April 14, 2020 and is entitled to receive an additional $25 million upon the U.S. Food and Drug Administration (FDA) approval of MYCAPSSA and an additional $15 million upon the availability of commercial drug supply and first commercial sale of MYCAPSSA. Chiasma is also entitled to receive an additional $10 million in early 2022 subject to the achievement of a commercial milestone. In exchange for the total investment amount received, HCR will receive a tiered royalty in the low double digits on worldwide annual net revenues of MYCAPSSA and any other future products, subject to step-downs upon the achievement of certain annual revenues.

“Healthcare Royalty Partners is a top-tier investment firm that provides important validation for Chiasma as we near our PDUFA date and move towards our goal of bringing the first oral somatostatin analog to acromegaly patients,” said Raj Kannan, Chief Executive Officer of Chiasma.  “We appreciate the extensive due diligence conducted by Healthcare Royalty Partners and plan to use the proceeds from this non-dilutive financing to support our ongoing activities as we prepare for a robust U.S. commercial launch of MYCAPSSA, if approved.”

“We are pleased to partner with Chiasma and its management team, which brings impressive commercial expertise and a commitment to addressing unmet medical needs,” said Clarke Futch, Managing Partner and Chairman of the Investment Committee of Healthcare Royalty Partners. “Our extensive due diligence gives us confidence that the commercial prospects for MYCAPSSA in acromegaly are compelling and offer an attractive investment opportunity for HCR.”

Chiasma announced on January 13, 2020 that the FDA accepted for review the New Drug Application (NDA) resubmission for MYCAPSSA for the maintenance treatment of adults with acromegaly. The FDA assigned a Prescription Drug User-Fee Act (PDUFA) target action date of June 26, 2020, which is a six-month review.