Windtree Therapeutics, Inc. has entered into a significant agreement to sell its cardiovascular drug candidates to Seismic Pharmaceutical Holdings, LLC, a private investment group based in the United States. This transaction allows Windtree to offload its cardiovascular portfolio while retaining a long-term economic interest in the drugs’ future success.
Under the terms of the deal, Seismic will assume full responsibility for the development of the cardiovascular assets. Windtree will receive 20 percent of any future milestone payments, royalties, or similar financial benefits generated by these assets, including global commercial net revenues if the drugs receive regulatory approval and reach the market.
Details of the Agreement
As part of the transaction, Windtree is also set to receive a contingent cash payment. Should Seismic successfully complete a financing round that generates at least $10,000,000 in gross proceeds for development, Windtree will receive $700,000 from those funds. Additionally, Windtree will transfer certain cardiovascular development-related payables to Seismic, which will help alleviate its near-term financial obligations.
Jed Latkin, Chief Executive Officer of Windtree, noted that this agreement enables the company to step away from the financial burdens and risks associated with continued development. He emphasized that the structure of the deal offers a non-dilutive potential value through future proceeds while relieving Windtree from the responsibility of funding ongoing work on these assets.
Market Potential and Strategic Shift
The drugs involved in this transaction specifically target acute heart failure, a condition that accounts for millions of hospital admissions annually. Windtree estimates that there were approximately 2.1 million hospitalizations in the United States and 2.7 million in the European Union in 2022. The company believes the global market opportunity for effective treatments for acute heart failure could reach billions of dollars, highlighting both the extensive patient population and the current lack of innovative therapies.
This agreement marks a strategic pivot for Windtree as it seeks to monetize its past research while also improving its financial stability. Conversely, for Seismic Pharmaceutical Holdings, the acquisition positions them to advance cardiovascular candidates in a field characterized by significant unmet medical needs. Windtree stands to benefit from this partnership if the drug candidates ultimately prove successful in the market.
As the landscape for cardiovascular treatments evolves, this deal underscores the potential for both companies to make an impact in a critical area of healthcare.
