Just two weeks ago, Impact Biomedicines announced they would be raising a $22.5 million dollar round. The company has now announced they have structured a $90 million package to progress its JAK2 inhibitor fedratinib for the future.
Impact is working with Oberland Capital to access the latest funding round. Oberland has structured the funding so payment is made in two milestone-based payments of $20 million each. In return, Impact will give Oberland predefined fedratinib royalties. The focus on royalties, rather than equity, signifies the model of Oberland and particularly the $425 million royalty and credit opportunities fund it started in 2015.
The deal also provides Impact a pipeline to money to help it start gathering fedratinib sales. If Impact gets the drug through the FDA and onto the market, it will have the chance to decline $35 million to $50 million more in predefined notes from Oberland. Those money is be allocated for funding the launch and commercialization of fedratinib.
This $90 million funding package came on the heels of Medicxi steering Impact to a $22.5 million round, the startup now has the money to take fedratinib and get it to market.
“We have been clear about our intentions at Impact to bring fedratinib to the patients who need it as quickly as possible,” Impact CEO John Hood, Ph.D., stated. “This financing with Oberland Capital paves the way with the financial resources we need to pursue our plans.”
Fedratinib used to be with Sanofi until they terminated the program after an FDA clinical halt in 2013. The company also felt their other treatments had more upside potential.
Fedratinib looked to have run its race when Sanofi pulled the program in response to an FDA clinical hold in 2013. At that time, Sanofi felt the risks of the myelofibrosis and polycythemia vera candidate outweighed the benefits.
With that completed, Impact now owns a drug supported by data from 877 patients across 18 trials. The main focus is, the package includes midphase clinical data displaying fedratinib improves outcomes in a group of cancer patients who are currently restricted for their options.