Nicox SA, an international ophthalmology company, has announced a $16.5 million financing agreement with Soleus Capital, a life sciences investment firm, to support the development of its lead asset, NCX 470, for glaucoma. The deal, finalized on October 14, 2024, involves a combination of royalty sales and equity financing, ensuring the company's operations are funded into the third quarter of 2025.
Financing Details
Under the terms of the agreement, Soleus Capital acquired Nicox's net share of the VYZULTA royalty for $15 million (€13.7 million). Additionally, Soleus invested $1.5 million (€1.37 million) in Nicox shares, issued at €0.3144 per share, representing a 20% premium to the closing price on October 11, 2024. The shares come with attached warrants valued at $0.75 million (€0.69 million), exercisable at €0.5240 per share, a 100% premium to the closing price on the same date.
Debt Restructuring
As part of the agreement, Nicox has reached an understanding with its main creditor to release the security on VYZULTA. This includes repaying €5.2 million of the company's principal debt by June 2025, which will significantly reduce Nicox's debt burden. The interest rate on the outstanding debt will remain at 9.25%.
NCX 470 Clinical Trial Update
Nicox also announced that the accelerated recruitment of patients for the NCX 470 Phase 3 Denali clinical trial means that topline data is now expected as early as the third quarter of 2025. NCX 470 is a novel nitric oxide (NO)-donating bimatoprost eye drop being evaluated for lowering intraocular pressure (IOP) in patients with open-angle glaucoma or ocular hypertension. The Denali trial is being conducted in the U.S. and China.
Strategic Implications
"The agreements announced today allow us to effectively monetize our VYZULTA revenue stream, creating an immediate source of cash to finance the development of our lead asset, NCX 470, whilst also bringing in a new, specialist investor, investing at a premium, to accompany our future development," said Gavin Spencer, Chief Executive Officer of Nicox. He also noted the expected launch of ZERVIATE in China, which was recently approved, as a new revenue stream for the company.
Benjamin Lund, Partner at Soleus Capital, commented, "We are excited to partner with Nicox on this transaction, providing the company runway towards its key value inflection point of clinical data for its Phase 3 Denali trial."
About Nicox
Nicox SA is an international ophthalmology company developing innovative solutions to maintain vision and improve ocular health. Its lead program, NCX 470, is in Phase 3 development. Nicox's first product, VYZULTA, is licensed to Bausch + Lomb and is commercially available in the U.S. and other territories. Nicox also generates revenue from ZERVIATE in allergic conjunctivitis, licensed in multiple geographies.
