Genfit: royalty sharing plan to reduce debt

(CercleFinance.com) - Genfit announced on Monday that it had entered into a royalty-sharing financing plan, a transaction that will enable it to reduce its debt.


The biopharmaceutical company reports that this non-dilutive royalty financing agreement signed with US-based HealthCare Royalty (HCRx) will enable it to raise a maximum of 185 million euros, of which 130 million immediately.

In return, HCRx will receive a portion of the royalties Genfit earns from worldwide sales of Iqirvo (elafibranor), a treatment for a rare liver disease called primary biliary cholangitis, under its licensing agreement with Ipsen.

Genfit will nonetheless retain the right to receive all potential future regulatory and commercial milestone payments under its partnership with Ipsen.

With these funds, Genfit intends to redeem its outstanding OCEANE bonds due 2025, with the aim of removing the burden of its convertible debt.

This agreement should enable the company to extend its cash horizon beyond 2027.

The share price rose by 1.2% on Monday morning on the Paris Bourse following these announcements.

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