Candel Therapeutics Inc (NASDAQ:CADL) on Thursday announced two financing initiatives to support the potential US launch of its cancer therapy aglatimagene besadenovec (CAN-2409) for intermediate- to high-risk localized prostate cancer: a $100 million royalty funding agreement with RTW Investments and a proposed $100 million public offering of common stock.
The royalty funding agreement provides Candel with non-dilutive financing to strengthen its balance sheet for a potential commercial launch of aglatimagene in the United States, subject to US Food and Drug Administration (FDA) approval.
RTW will receive a tiered single-digit percentage of annual net sales of aglatimagene in the US, subject to a cap. The funding will become available upon FDA approval and satisfaction of other customary conditions.
“This non-dilutive strategic financing will support the US launch of aglatimagene besadenovec, assuming FDA approval, and will allow us to further invest in what we believe will be a world class commercial program,” Candel CEO Paul Peter Tak said in a statement.
“We are thrilled with our RTW partnership, as we seek to provide a new treatment option for patients in the early stages of prostate cancer who are treated with curative intent, a disease that has seen minimal innovation over the past two decades.”
Separately, Candel announced the launch of the proposed $100 million public offering of its common stock, with a 30-day option for underwriters to purchase up to an additional $15 million in shares.
Candel said it intends to use the net proceeds to complete launch readiness, medical affairs, pre-commercialization, and commercial activities for aglatimagene in early, localized prostate cancer, ongoing development of its phase 3 trial of aglatimagene in non-small cell lung cancer, and for general corporate purposes.
Citigroup, Cantor, and Stifel are acting as joint bookrunning managers, LifeSci Capital as lead manager, and H.C. Wainwright & Co. and Brookline Capital Markets as co-managers.