Curis Gets $65.0 Mln Upfront Payment On Sale Of Portion Of Erivedge Royalties

(RTTNews) - Curis, Inc. (CRIS) announced that it has entered into an agreement with funds managed by Oberland Capital Management, LLC for up to $135.7 million in exchange for selling rights to a portion of royalty revenues on worldwide net sales of Erivedge. Curis received $65.0 million in an upfront cash payment, plus the company is entitled to receive up to an additional $70.7 million in milestone payments. Curis used a portion of the sale proceeds to retire existing debt, with remaining proceeds of approximately $30 million to be used to fund its operations.

James Dentzer, President & CEO of Curis, commented, "We are pleased to announce this agreement with Oberland Capital. We believe this structure provides Curis with substantial non-dilutive capital today, while retaining significant participation in the future upside potential of Erivedge. The proceeds of this transaction further strengthen our cash position as we fund our three lead therapeutic candidates to reach their near term development catalysts and beyond."