Benzinga | Aug 2, 2021 08:05AM EDT

CymaBay Announces $100M Non-Dilutive Financing With Abingworth

Risk-sharing agreement with Abingworth will fund seladelpar Phase 3 development program for PBC



CymaBay retains full worldwide commercial rights to seladelpar

NEWARK, Calif., Aug. 02, 2021 (GLOBE NEWSWIRE) -- CymaBay Therapeutics, Inc. (NASDAQ:CBAY), a clinical-stage biopharmaceutical company focused on developing therapies for liver and other chronic diseases with high unmet need, today announced a $100 million non-dilutive financing transaction with Abingworth to fund the Phase 3 development program for seladelpar in primary biliary cholangitis (PBC), including the Phase 3 RESPONSE clinical trial.

"CymaBay continues to seek the most capital efficient way to fund its pipeline with today's announcement of a strategic funding arrangement with Abingworth to support the completion of the Phase 3 development program for seladelpar in PBC," said Sujal Shah, Chief Executive Officer of CymaBay. "By thoughtfully risk-sharing development costs with Abingworth, who shares our belief in the potential of seladelpar to serve as an improved second-line treatment for patients with PBC, we have secured the additional funding needed for the Phase 3 program." Shah continued, "This transaction provides us with capital needed to complete Phase 3 development and an investor with a long track record of successfully funding innovative companies focused in life sciences."

Under the terms of the transaction, CymaBay will receive up to $100 million of seladelpar development costs, of which $75 million will be received in three installments over approximately six months. CymaBay has an option to receive a further $25 million within approximately two months of the completion of enrollment of CymaBay's Phase 3 RESPONSE clinical trial. In exchange, CymaBay will make fixed payments spread over a six-year period based on regulatory approval in the U.S. or the E.U. after the first such regulatory approval is obtained, as well as pay fixed and capped sales milestones based on U.S. product sales. CymaBay has the ability to accelerate payment at a reduced amount upon regulatory approval and in the event of a change of control of CymaBay. CymaBay retains upside potential for seladelpar in the U.S. along with full worldwide commercial rights.

CymaBay is currently dosing patients in its Phase 3 RESPONSE clinical trial as well as its ASSURE open- label extension trial and other Phase 1 NDA-enabling clinical studies.

"We are excited to provide CymaBay with the capital needed to advance seladelpar through Phase 3 trials with the aim of bringing this important medicine to patients in real need," said Bali Muralidhar, Managing Partner at Abingworth. "This deal is a great example of the creative financing structures we look to form with innovative biopharma companies through ACCD2, our new clinical co-development fund."

Perella Weinberg Partners and J. Wood Capital Advisors LLC acted as financial advisors to CymaBay on the transaction.