VectivBio signs a $117m Japan exclusive license deal and loan facility agreement

Based in Basel, VectivBio is a clinical-stage biopharmaceutical company pioneering novel transformational treatments for severe, rare conditions. Lead product candidate apraglutide is a next-generation, long-acting synthetic GLP-2 analog being developed for a range of rare gastrointestinal diseases where GLP-2 can play a central role in addressing disease pathophysiology, including short bowel syndrome with intestinal failure (SBS-IF) and Acute Graft-Versus-Host Disease (aGVHD).

The company entered into an exclusive licensing agreement with Japan-based pharma company, Asahi Kasei Pharma Corporation. Under the terms of the agreement, Asahi Kasei Pharma has a right to participate in the development of new indications and lead and fund all development, registration and commercialization activities in the country.

VectivBio will receive an upfront cash payment of approximately $30 million ($5 million of which is the first instalment of Asahi Kasei Pharma’s development cost-sharing). The company will also receive eligibility for up to approximately $170 million in milestone payments if certain development, regulatory and commercial events are achieved. VectivBio is also eligible to receive tiered, double-digit, escalating royalties on sales of apraglutide in Japan.

“We are excited to partner with Asahi Kasei Pharma, a leader in the Japanese pharmaceutical industry with a proven history of successful drug development, commercialization and global collaborations. This agreement accelerates the development of apraglutide in Japan, a key market outside our core commercial strategy. Moreover, it validates apraglutide’s best or first-in-class potential across a range of GI conditions and VectivBio’s ability to execute global development programs, including Asia,” said Luca Santarelli, Founder and Chief Executive Officer of VectivBio.

VectivBio also entered into a loan facility with Kreos Capital, a leading global growth lender to life sciences and healthcare companies, granting it access to a $75 million flexible loan facility with a minimum required drawdown of $10 million.

The two agreements will strengthen the company’s balance sheet, bolster operations and expand apraglutide’s commercial potential beyond VectivBio’s core markets in the US and EU. With VectivBio’s cash and cash equivalents as of December 31, 2021, of $103 million, the two agreements provide up to $220 million in operating capital.

(Press release)