Fortress Biotech Celebrates Major Financing for Dotinurad
$205 Million Series A Financing for Crystalys Therapeutics
Urica Therapeutics, a subsidiary of Fortress Biotech, Inc. (NASDAQ: FBIO), has recently announced a remarkable achievement with Crystalys Therapeutics closing a $205 million Series A financing round. This enticing funding aims to propel global Phase 3 clinical studies for dotinurad, a revolutionary treatment for gout. Co-led by prominent investors such as Novo Holdings, SR One, and Catalys Pacific, this financing round has attracted a substantial syndicate of investors, marking a significant milestone for Urica and its innovative portfolio.
Advancements in Gout Treatment
Dotinurad is identified as a next-generation URAT1 inhibitor, featuring impressive potential for best-in-class safety and efficacy in gout management. The support from this financing round is expected to facilitate pivotal global trials that will fast-track dotinurad's approval in various regions, including the United States and Europe. This is a pivotal moment not just for Crystalys but also for Urica, which has sold dotinurad to Crystalys in exchange for equity and a royalty agreement.
Impact of the Financing
According to Lindsay A. Rosenwald, M.D., Fortress' Executive Chairman, the significant amount raised empowers Urica to accelerate dotinurad's advancement in the market, potentially reaching millions of patients who are affected by gout. This agreement not only aims to expedite the treatment's rollout but also allows Fortress and Urica to benefit from their equity stake in Crystalys alongside future royalties once dotinurad reaches commercialization.
Fortress Biotech's Vision
Fortress Biotech is not just focused on this strategic relationship with Crystalys but is also committed to previous successes. In a recent noteworthy development, Fortress completed the acquisition of Checkpoint Therapeutics by Sun Pharma, generating approximately $28 million upfront and additional contingent value rights. The company’s diverse portfolio encompasses numerous clinical-stage assets aimed at delivering innovative treatments across oncology, dermatology, and rare diseases, reaffirming Fortress' commitment to enhancing long-term shareholder value.
About Urica Therapeutics
Following the successful sale of dotinurad, Urica maintains a minority stake in Crystalys and has appointed a member to its board. The agreement positions Urica to receive future royalty income, ensuring financial growth while investing in the development of groundbreaking therapies. It reflects a strategic approach to nurturing innovation and advancing essential treatments in the pharmaceutical space.
Established Partnerships
Fortress Biotech is distinctive for its robust partnership network with several esteemed academic institutions and biopharmaceutical companies, including AstraZeneca and Columbia University, aimed at maximizing each opportunity. Through these collaborations, Fortress seeks to harness its industry expertise to broaden its scope of product opportunities while driving the portfolio toward commercialization.
Future Goals and Market Strategy
As Fortress Biotech navigates the evolving landscape of biopharmaceutical development, its strategic focus remains on realizing value through its extensive network of commercial and clinical-stage assets. By continuously fostering new business development opportunities, Fortress ensures it remains at the forefront of biopharmaceutical innovation, addressing unmet medical needs while delivering returns for its stakeholders.
Frequently Asked Questions
What is the significant financing round amount announced by Crystalys?
The Series A financing announced by Crystalys Therapeutics amounts to $205 million.
What is dotinurad's significance in gout treatment?
Dotinurad is a next-generation URAT1 inhibitor with potential best-in-class safety and efficacy for treating gout.
Who led the Series A financing for Crystalys?
The financing was co-led by Novo Holdings, SR One, and Catalys Pacific, along with a broad syndicate of investors.
How does Urica benefit from the sale of dotinurad?
Urica received an equity position in Crystalys and will earn a 3% royalty on future net sales of dotinurad.
What is Fortress Biotech's strategy for growth?
Fortress aims to enhance value for shareholders through product revenue, equity holdings, and royalties while pursuing innovative treatments across various therapeutic areas.
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