WAYNE, Pa. - Aclaris Therapeutics, Inc. (NASDAQ: NASDAQ:ACRS), a developer of treatments for immuno-inflammatory diseases, has sold a portion of its future royalty earnings from the sale of OLUMIANT, a drug used for treating alopecia areata, to OMERS, a Canadian pension plan.
Announced today, the transaction includes an upfront payment to Aclaris of $26.5 million, with the potential for an additional $5.0 million, contingent on reaching specific sales milestones in 2024.
The agreement grants OMERS a share of the royalties from Eli Lilly and Company (NYSE:LLY)'s worldwide net sales of OLUMIANT beginning April 1, 2024, and includes all remaining anniversary milestone payments from Lilly to Aclaris under their license agreement.
Dr. Neal Walker, Interim President & CEO and Chair of the Board of Directors of Aclaris, stated that this deal strengthens the company's balance sheet and enhances financial flexibility to invest in internal programs and pursue other value-creating opportunities.
Aclaris is currently conducting a strategic review of its business to identify additional investment opportunities that complement its drug development pipeline. The company's portfolio includes multiple drug candidates targeting protein kinase regulation to address unmet needs in immuno-inflammatory diseases.
Cantor Fitzgerald & Co. served as the financial advisor to Aclaris, with DLA Piper LLP (US) providing legal counsel. OMERS was advised by Davies Ward Phillips & Vineberg LLP.
OMERS Life Sciences, part of the larger OMERS pension plan, focuses on providing royalty financing and other non-dilutive financial solutions to biopharmaceutical companies and academic institutions.
The press release includes forward-looking statements, which involve certain risks and uncertainties that could cause actual results to differ materially from those projected. The statements reflect Aclaris' current expectations and are subject to change. The company has cautioned readers not to place undue reliance on these forward-looking statements, which speak only as of the date made.
This news article is based on a press release statement from Aclaris Therapeutics, Inc. and does not include any independent verification of the claims.
In other recent news, Aclaris Therapeutics, Inc. has made significant strides in its atopic dermatitis study. The company declared in its First Quarter 2024 Conference Call that it would be advancing ATI-2138, an oral small molecule inhibitor, into a Phase 2 proof-of-concept study. This decision comes after the drug demonstrated high potency and favorable pharmacokinetics in a positive Phase 1 study.
Financially, Aclaris Therapeutics reported a robust cash position of $161 million and is currently focusing on cost containment and non-dilutive funding strategies. The company has expressed confidence in its ability to complete the upcoming study and anticipates releasing top-line data within the next year.
Despite the potential for a black box warning, similar to other JAK inhibitors, Aclaris remains optimistic about the potential of its ITK approach in addressing the significant unmet needs in the atopic dermatitis market. The company is also exploring strategic options and business development opportunities. However, it's important to note that these are recent developments, and further updates are expected.
InvestingPro Insights
In light of Aclaris Therapeutics' recent royalty transaction with OMERS, insights from InvestingPro reflect a mixed financial landscape for the company. Aclaris, with a market capitalization of $94.78 million, appears to be navigating through challenging times, as indicated by its negative price-to-earnings (P/E) ratios of -1.23 historically and an adjusted -1.04 for the last twelve months as of Q1 2024.
This suggests that the company has not been profitable over the recent past. Furthermore, the company's revenue growth has been modest at 0.95%, with a quarterly decline of -5.14% in Q1 2024, highlighting potential concerns about its revenue trajectory.
However, on a positive note, Aclaris holds an advantage in liquidity, as it has more cash than debt on its balance sheet, which is a strength in the current financial environment. Moreover, the company's liquid assets exceed its short-term obligations, providing some financial cushion. This could be a critical factor as the company looks to invest in internal programs and explore new investment opportunities as part of its strategic review.
InvestingPro Tips for Aclaris suggest that while analysts have revised their earnings upwards for the upcoming period, they also anticipate a sales decline in the current year and do not expect the company to be profitable this year. Aclaris has been quickly burning through cash, which could be a point of concern for potential investors.
For those interested in a deeper analysis, there are over 10 additional InvestingPro Tips available, which can be accessed through the dedicated link for Aclaris at InvestingPro: https://www.investing.com/pro/ACRS. To enrich your investment research, consider using the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.
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