Nuvation Bio, a global biopharmaceutical company addressing some of the greatest unmet needs in oncology, today announced non-dilutive financings of up to $250 million with Sagard Healthcare Partners. The deal features a royalty interest financing of $150 million and a senior term loan of up to $100 million.
These financings enhance Nuvation Bio’s balance sheet to fully fund the commercialization of taletrectinib in the U.S., if approved, and the development of the company’s current clinical-stage pipeline. The deal also provides Nuvation Bio with a path to potential profitability without the need to raise additional capital.
Subject to the approval of taletrectinib by the FDA on or before September 30, 2025, Sagard will offer Nuvation Bio with an upfront cash payment of $150 million. And in return, Sagard will receive tiered royalties on U.S. net sales of taletrectinib, including 5.5% of annual U.S. net sales up to $600 million and 3.0% of annual U.S. net sales between $600 million and $1 billion.
Nuvation Bio will retain all annual U.S. net sales above $1 billion. The payments to Sagard will cease upon the earliest occurrence of total royalties reaching 1.6 times its investment by June 30, 2031, 1.75 times its investment by June 30, 2034, or 2x its investment thereafter.
Along with the royalty financing, Sagard has committed to a 5-year, senior-secured term loan of up to $100 million, with $50 million to be funded upon U.S. FDA approval of taletrectinib on or prior to September 30, 2025. The second tranche of $50 million is available at Nuvation Bio’s option until June 30, 2026, as long as Nuvation Bio has achieved the first U.S. commercial sale of taletrectinib.
TD Cowen served as financial advisor and Cooley served as legal advisor to Nuvation Bio. Sidley Austin served as legal advisors to Sagard.
KEY QUOTES:
“This transaction is a significant milestone for Nuvation Bio as we prepare to bring taletrectinib to the U.S. market, subject to FDA approval, in mid-2025. With these financings, we are well positioned to launch taletrectinib and drive continued development of our clinical-stage pipeline—all without the need for additional fundraising. This also improves our flexibility to pursue strategic opportunities to deploy our capital. We are thrilled to have support from Sagard and appreciate their shared confidence in taletrectinib and Nuvation Bio as we continue toward our goal of improving outcomes for patients with cancer.”
- David Hung, M.D., Founder, President, and Chief Executive Officer of Nuvation Bio
“We are excited to partner with Nuvation Bio, an organization with deep oncology expertise and a commitment to delivering transformative therapies. We believe taletrectinib has the potential to redefine the treatment landscape for patients with ROS1-positive non-small cell lung cancer, and we are pleased to provide a structured financing that supports both potential near-term commercialization and long-term growth.”
- Raja Manchanda, Partner at Sagard Healthcare Partners
