Annual report pursuant to Section 13 and 15(d)

Subsequent Events

v3.22.1
Subsequent Events
12 Months Ended
Dec. 31, 2021
Subsequent Events  
Subsequent Events

15. Subsequent Events

On March 30, 2022, the Company entered into a royalty-based financing with R-Bridge Healthcare Fund, an affiliate of CBC Group, or the R-Bridge Financing. In connection with this financing, the Company will receive an upfront amount of $15.0 million, plus $15.0 million upon first commercial sale of OLINVYK in China. The Company will also receive an additional $10.0 million upon achievement of either a commercial or financing milestone.

The R-Bridge Financing will be repaid through assignment to R-Bridge of all royalties from the Company’s license with its partner in China, Jiangsu Nhwa Pharmaceutical, or Nhwa, and through a 4% net revenue interest in U.S. net sales of OLINVYK. This U.S. revenue interest will be capped at $10.0 million if Chinese approval occurs by year-end 2023. In the event Chinese approval does not occur by that time, the U.S. revenue interest will increase to 7% and will continue until certain combined totals of U.S. revenue interest and Chinese royalties are repaid. The Company retains all milestones from our partnership with Nhwa, including a $3.0 million milestone on Chinese approval.