Nanobiotix is continuing to find fresh ways to eke money out of its Johnson & Johnson-partnered, phase 3-stage cancer drug.
The radiotherapy-activated drug, dubbed JNJ-1900 or NBTXR3, is currently undergoing a late-stage trial in locally advanced head and neck squamous cell cancers. Nanobiotix has previously faced doubts about its ability to fund the trial through to the delivery of interim data and has leaned on the drug itself to keep the money flowing.
Back in March, this involved amending its agreement with J&J to remove Nanobiotix’s commitment to contribute to the funding of JNJ-1900. While this shrunk the potential milestone payments coming Nanobiotix’s way by $105 million, in the near term it meant the biotech was relieved of most of the costs of the phase 3 trial, which the company had described as a “significant portion of the company’s operating costs.”
But, with just 28.8 million euros ($33.3 million) left in the bank by the end of June, the biotech has been warning in recent weeks that its “existing cash and cash equivalents will be insufficient to fund its operations over the next 12 months.”
Now, the company has received a financial life line from HealthCare Royalty. The drug-royalty-focused investment firm is lending Nanobiotix $71 million in non-dilutive capital, with $50 million upfront and $21 million following within a year if certain conditions are met.
Nanobiotix will repay this debt from “a defined portion of royalties on the first $1 billion of net sales and a portion of certain regulatory and commercial milestone payments,” according to the release. The biotech will be due to pay back $124 million if it reaches this goal by 2030, or pay back $178 million if it takes longer.
Beyond this point, HCRx will also be entitled to a “predefined, reduced share of royalties not to exceed $14.9 million per year” for the first 10 years JNJ-1900 is available in the U.S.
Nanobiotix said the money from HCRx will fund the biotech into early 2028. With milestone payments for JNJ-1900’s development in both head and neck cancer and lung cancer expected to drip in during this period, the biotech claimed it has now “established the financial foundation for self-sustaining long-term growth.”
NBTXR3 is a suspension of metabolically inert nanosized particles that feature a core designed to boost the local absorption of ionizing radiation and a coating to facilitate entry into tumor cells. When injected into tumors, the particles interact with X-rays, driving the generation of more electrons than happens in conventional radiotherapy.
“We are excited to partner with Nanobiotix at this pivotal stage of its growth,” HCRx CEO Clarke Futch said in the release.
“The differentiated nature of their physics-based approach and the compelling clinical profile of JNJ-1900 (NBTXR3) align with our mission of supporting innovative therapies that address areas of significant unmet need,” Futch added. “This investment underscores our confidence in this first-of-its-kind approach to cancer treatment, which has the potential to redefine standards of care and establish an entirely new class of therapy.”