DALLAS, TX / ACCESSWIRE / January 23, 2024 / SWK Holdings Corporation (Nasdaq:SWKH) ("SWK" or the "Company"), a life science-focused specialty finance company catering to small and mid-sized commercial-stage companies, today provided a corporate progress update as well as a summary of the achievements of its borrower partners.
"We concluded 2023 with a surge in deal activity as the 2023 investments SWK has made in the team and underwriting process paid dividends through an increased pipeline and four deal closings," stated Jody Staggs, President and CEO of SWK. "During the quarter, SWK closed approximately $60 million of financings with $55 million deployed. With these new capital deployments, SWK's portfolio of life science finance receivables grew to an all-time high as of December 31, 2023. We are well positioned to achieve sustained growth and deliver positive returns to our shareholders through our selective investment in innovative life science companies."
SWK Holdings Portfolio Updates
New Financings
- In the fourth quarter of 2023, SWK closed four financings with new partners for total deployment of approximately $60 million.
- A $20.0 million loan to Journey Medical Corporation, a commercial-stage pharmaceutical company focused on addressing dermatological conditions. $15 million of the Journey loan was drawn at close with the remaining $5 million available at the company's option.
- A $20.0 million loan to Shield Therapeutics, a commercial-stage pharmaceutical company focused on addressing iron deficiency.
- A $6.0 million loan to Nicoya Lifesciences, a developer, manufacturer, and marketer of proprietary benchtop instrumentation.
- A $14.1 million acquisition of a series of cumulative sales-based milestones tied to a portfolio of revenue producing immune globulins.
SWK Holdings Borrower Partner Achievements
4Web, Inc.
4Web, Inc. 4Web is a privately held medical device company, based in Frisco, TX, which utilizes proprietary truss implant technology to develop and market spinal implants.
- On September 27, 2023, 4Web announced it had received 510(k) clearance to market its newest addition to the Company's implant portfolio, the Cervical Spine Truss System (CSTS) Integrated Plating Solution, providing an additional stand-alone treatment option for its surgeon customers.
Biolase, Inc.
Biolase, Inc., traded on Nasdaq, ticker symbol BIOL, is a medical device company that develops, manufactures, and markets proprietary dental laser systems.
- On December 6, 2023, Biolase announced that it entered into a securities purchase agreement with a single institutional investor to purchase $1.4 million of its common stock and pre-funded warrants.
- Continued operating improvements and efficiencies reduced operating loss by 52% year-over-year for the quarter ended September 30, 2023.
Biotricity, Inc.
Biotricity, Inc., traded on Nasdaq, ticker symbol BTCY, is a medical technology company focused on delivering remote biometric monitoring solutions to the medical and consumer markets.
- For the quarter ended September 30, 2023, increased revenue 21% to $2.9 million compared with $2.4 million in quarter ended September 30, 2022.
- Gross profit was 69% for the three months ended September 30, 2023, as compared to 54% in the corresponding prior year quarter, as a result of growing recurring technology fee revenue base.
- On October 31, 2023, Biotricity issued an unsecured convertible preferred note to an investor in the principal amount of $1.0 million.
Elutia
Elutia Inc., traded on Nasdaq, ticker symbol ELUT, is a biologics company with a portfolio of regenerative products aimed at improving compatibility between medical devices and the patients they treat.
- For the quarter ended September 30, 2023, reported year-over-year sales growth of 25% for proprietary products CanGaroo and SimpliDerm.
- Submitted 510(k) for CanGarooRM, the next-generation, drug-eluting version of CanGaroo, with an anticipated approval decision in 1H24.
Eton Pharmaceuticals, Inc.
Eton, traded on Nasdaq, ticker symbol ETON, is an innovative pharmaceutical company focused on developing and commercializing treatments for rare diseases.
- Eton has demonstrated 11 straight quarters of product revenue growth, reaching $7.0 million in third quarter of 2023. Cash flow also reached break even during the same period, and Eton reported $22.1 million cash on hand to support growth.
- Eton expects greater than $30.0 million of total revenue during full year 2023, a 40% increase from the prior year's comparable period.
Journey Medical Corporation
Journey, traded on Nasdaq, ticker symbol DERM, is a commercial-stage pharmaceutical company focused on commercializing FDA-approved, prescription dermatology products.
- In January, announced submission of a New Drug Application ("NDA") to the FDA seeking approval for DFD-29 (Minocycline Hydrochloride Modified Release Capsules, 40 mg) for the treatment of inflammatory lesions and erythema of rosacea in adults.
- Generated total net revenues of $34.5 million in the quarter ended September 30, 2023, a 101% increase from $17.2 million in the second quarter of 2023.
- Received an upfront payment of $19.0 million upon entering into an exclusive license agreement with Maruho Co., Ltd. for Qbrexza® in South Korea and other Asian nations.
Nicoya Lifesciences Inc.
Nicoya is a Canadian life sciences tools company focused on innovative biosensor technology for the academic, biotechnology, and pharmaceutical sectors.
- In October 2023, Nicoya opened a new lab facility in San Francisco to support the drug discovery community in the Bay Area
Shield Therapeutics plc
Shield, traded on the London Stock Exchange, symbol STX, is a commercial-stage specialty pharmaceutical company focused on addressing iron deficiency with its lead product Accrufer®/Feraccru® (ferric maltol).
- For the quarter ended September 30, 2023, Shield sold over 27,750 total prescriptions, an increase of 76% compared to the quarter ended June 30, 2023.
- Increased average selling price per prescription by 24% in the quarter ended September 30, 2023, compared to the first half of 2023.
- In September and October 2023, Shield completed an equity financing that raised a total of $6.2 million.
About SWK Holdings Corporation
SWK Holdings Corporation is a life science focused specialty finance company partnering with small- and mid-sized commercial-stage healthcare companies. SWK provides non-dilutive financing to fuel the development and commercialization of lifesaving and life-enhancing medical technologies and products. SWK's unique financing structures provide flexible financing solutions at an attractive cost of capital to create long-term value for all SWK stakeholders. SWK's solutions include structured debt, traditional royalty monetization, synthetic royalty transactions, and asset purchases typically ranging in size from $5.0 million to $25.0 million. SWK also owns Enteris BioPharma, a clinical development and manufacturing organization providing development services to pharmaceutical partners as well as innovative formulation solutions built around its proprietary oral drug delivery technologies, the Peptelligence® platform. Additional information on the life science finance market is available on the Company's website at www.swkhold.com.
Safe Harbor Statement
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Statements including words such as "believes," "expects," "anticipates," "intends," "estimates," "plan," "will," "may," "look forward," "intend," "guidance," "future" or similar expressions are forward-looking statements. Because these statements reflect SWK's current views, expectations and beliefs concerning future events, these forward-looking statements involve risks and uncertainties. Investors should note that many factors, as more fully described under the caption "Risk Factors" and elsewhere in SWK's Form 10-K, Form 10-Q and Form 8-K filings with the Securities and Exchange Commission and as otherwise enumerated herein, could affect the Company's future financial results and could cause actual results to differ materially from those expressed in such forward-looking statements. The forward-looking statements in this press release are qualified by these risk factors. These are factors which, individually or in the aggregate, could cause the Company's actual results to differ materially from expected and historical results. You should not place undue reliance on any forward-looking statements, which speak only as of the date they are made. We assume no obligation to publicly update any forward-looking statements, whether as a result of new information, future developments or otherwise.
For more information, please contact:
Tiberend Strategic Advisors, Inc.
Daniel Kontoh-Boateng (Investors)
dboateng@tiberend.com
Eric Reiss (Media)
ereiss@tiberend.com
SOURCE: SWK Holdings Corporation
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