Epi health, llc acquired worldwide rights to rhofade from aclaris therapeutics, inc. (nasdaqgs:acrs) for $55 million.

Epi health, llc acquired worldwide rights to rhofade from aclaris therapeutics, inc. (nasdaqgs:acrs) for $55 million on october 10, 2019. the transaction also includes the assignment of certain licenses for related intellectual property assets. under the terms of the transaction, epi health has agreed to pay aclaris total cash consideration of up to $55 million, consisting of an upfront payment of $35 million of which $1.75 million of which was placed in escrow and potential sales milestone payments of up to $20 million in the aggregate upon the achievement of specified levels of net sales of products covered by the agreement. following the 12 month anniversary of the closing date, epi health and aclaris shall jointly instruct citibank, n.a., the escrow agent, to release any remaining escrow amount in accordance with the terms of the escrow agreement. in addition, epi health has agreed to pay aclaris, a specified high single-digit royalty calculated as a percentage of net sales, on a product-by-product and country-by-country basis, subject to specified reductions, limitations and adjustments and 25% of any upfront, license, milestone, maintenance or fixed payment received by epi health from a licensee or sub licensee in any territory outside of the united states, subject to specified exceptions and approximately $0.2 million for certain inventory, subject to a specified post-closing inventory-related adjustment. epi health has agreed to assume the obligation to pay specified royalties and milestone payments under aclaris’ existing agreements with allergan sales, llc, aspect pharmaceuticals, llc and vicept therapeutics, inc. the transaction has been unanimously approved by a special committee of aclaris’ board of directors. concurrently with the closing of this transaction, aclaris repaid in full its $30 million term loan (plus fees and expenses) with oxford finance llc. as a result of these changes, aclaris anticipates that its current cash, cash equivalents and marketable securities on hand, including the upfront proceeds received from epi health, and the repayment of the outstanding term loan, will be sufficient to fund its operations into the third quarter of 2021. svb leerink llc acted as exclusive financial advisor and fahd m. t. riaz of dla piper llp (us) acted as legal advisor to aclaris. jennifer daniels of blank rome llp acted as legal advisor to epi health. epi health, llc completed the acquisition of worldwide rights to rhofade from aclaris therapeutics, inc. (nasdaqgs:acrs) on october 10, 2019.
ACRS Ratings Summary
ACRS Quant Ranking