Life science firm Nuvation Bio raised $250 million to bring its novel lung cancer therapy to market and help it reach profitability, the company said Monday.
The Midtown biotech secured royalty and debt financing from Montreal, Canada-based investor Sargard Healthcare Partners to help commercialize its drug taletrectinib, a potent oral medication being developed to treat a specific type of advanced non-small cell lung cancer that is resistant to most treatments. The drug is already approved in China and is making its way through the review process in the U.S. – the Food and Drug Administration started reviewing it in December and is planning to make a decision on whether to approve it by mid-June, the company said.
If the FDA greenlights the cancer drug, Nuvation Bio will get $150 million in cash upfront to bring it to market. The firm has agreed to give its investor 5.5% of its annual taletrectinib net sales up to $600 million and 3% of sales up to $1 billion, the company said.
Nuvation Bio also has access to $100 million in debt financing through 2026 to fully fund the commercialization of its novel cancer therapy.
The company said the new capital will offer it a chance to break even. The funding will allow Nuvation Bio to launch taletrectinib and continue to develop other clinical products in the pipeline – all without the need for additional fundraising, Dr. David Hung, the company’s founder and chief executive, said in a statement.
Nuvation Bio was founded in 2018 to develop novel oncology drugs for diseases that have historically been difficult to treat, including advanced non-small cell lung cancer and brain tumors. The company went public in 2021 via special purpose acquisition company, Panacea Acquisition Corp. in a $500 million deal.
