Shield Therapeutics PLC (AIM:STX, OTCQX:SHIEF) announced an equity fundraising and a separate, multi-year deal to co-commercialise its Accrufer iron therapy with Viatris Inc, which could provide up to a total of US$37.7mln in new funds.
Under the exclusive partnership agreement, Viatris and Shield will devote a 100-strong sales team to promote Accrufer – currently the only oral iron product to treat iron deficiency approved by the US Food and Drug Administration (FDA) – to US healthcare professionals who write the majority of oral iron prescriptions.
Shield, which will receive an up-front payment of US$5mln as part of the deal, and Viatris have also agreed to deploy additional digital marketing, market access, distribution and commercial operations via a shared cost model.
Shield is covering a “slightly higher percentage” of revenue and marketing costs, with Viatris paying Shield a series of sales milestones up to a total of US$30mln, linked to annual net sales ranging from US$100mln to US$250mln.
Shield chief executive Greg Madison said: “Shield has built a solid foundation for Accrufer since launch with a small commercial sales team and we believe this agreement with Viatris will markedly accelerate the adoption and growth of Accrufer.
“Viatris' well established commercial infrastructure including strong prescriber relationships, best in class digital marketing and direct to patient capabilities, and extensive market access experience makes them an ideal partner for Shield and Accrufer.”
Separately, Shield also launched a proposed equity fundraising, split into a subscription, placing and open offer, as well as revealing a US$10mln extension to its existing convertible shareholder loan facility with AOP Health International Management.
The subscription and share placing aim to raise roughly £14.7mln at a price per share of 6p, with an open offer to qualifying shareholders of up to £3.9mln at the same price, which represents a discount of 11% on Monday’s close. The open offer is not underwritten.
AOP has stated its intention to take up £3.4mln of shares in the subscription, with Shield directors subscribing for almost £688,000 of shares.
Shield said it estimates that Accrufer has the potential to generate combined net product revenues in excess of US$150mln by the end of 2025 and that the group will turn cash flow positive in the final quarter of 2024, based on internal forecasts.
Shield management will provide a live investor presentation on Wednesday 14 December 2022 at 4.30pm London time, on the Investor Meet Company platform.