One of the stocks that gathered momentum on Tuesday was that of the biotech firm Aptevo Therapeutics Inc (NASDAQ:APVO). It came about primarily due to the emergence of positive news regarding the company’s business. The company revealed that it has engaged the services of Piper Sandler in order to sell the royalty payment streams and milestone payouts for two of its products.
Engages Piper Sandler to Sell its RUXIENCE and IXINITY(R) Royalty Streams & Milestones
The products in question are IXINITY and RUXIENCE. The company had announced last month that its royalty payments for RUXIENCE from pharmaceutical giant Pfizer is going to be in single digits and will take into consideration the net sales of the product in the European Union, Japan, and United States. The royalty term is for 7 years.
On the other hand, the royalty payments for IXINITY are going to be paid by Medexus Pharmaceuticals and will take into consideration the net sales of the product in Canada and the United States. The royalty term is going to run until 2035 and payments are going to be made on a quarterly basis.
Aptevo could also be entitled to a milestone payment of $11 million. Royalty payments can be a highly lucrative source of income for companies like Aptevo and there has been a buzz around the company ever since the company made the announcement regarding the royalty payments back on June 25.
The Chief Executive Officer of the company Marvin L. White stated that the royalties will provide Aptevo with much needed non-dilutive cash so that it can work on its other products. He went on to state that the decision to sell the royalties and milestones to Piper Sandler is consistent with Aptevo’s quest to further strengthen its financial position.
At the end of the day, it takes a lot of money to fund the research and development of new medicines and the latest move from Aptevo has naturally excited the market.