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KalVista Pharmaceuticals Enters into Non-Dilutive Synthetic Royalty Financing with DRI Healthcare Trust

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KalVista Pharmaceuticals (NASDAQ: KALV) has secured a synthetic royalty financing agreement with DRI Healthcare Trust worth up to $184 million to support the commercial launch of sebetralstat, potentially the first oral on-demand therapy for hereditary angioedema (HAE). The deal includes a $100 million upfront payment, an optional $22 million payment upon U.S. approval, and up to $57 million in sales-based milestones. The FDA has set a PDUFA target date of June 17, 2025. Under the agreement, KalVista will pay DRI tiered royalties ranging from 0.25% to 5.00% based on annual global net sales thresholds. DRI has also expressed interest in a potential $5 million equity investment in KalVista.

KalVista Pharmaceuticals (NASDAQ: KALV) ha stipulato un accordo di finanziamento in forma di royalty sintetica con DRI Healthcare Trust del valore massimo di 184 milioni di dollari per supportare il lancio commerciale di sebetralstat, potenzialmente la prima terapia orale su richiesta per l'angioedema ereditario (HAE). L'accordo prevede un pagamento iniziale di 100 milioni di dollari, un pagamento opzionale di 22 milioni di dollari all'approvazione negli Stati Uniti e fino a 57 milioni di dollari in traguardi basati sulle vendite. La FDA ha fissato una data obiettivo PDUFA per il 17 giugno 2025. In base all'accordo, KalVista pagherà a DRI royalties scalari che variano dallo 0,25% al 5,00% in base ai limiti annuali delle vendite nette globali. DRI ha anche espresso interesse per un possibile investimento in capitale di 5 milioni di dollari in KalVista.

KalVista Pharmaceuticals (NASDAQ: KALV) ha logrado un acuerdo de financiamiento por regalías sintéticas con DRI Healthcare Trust por un valor de hasta 184 millones de dólares para apoyar el lanzamiento comercial de sebetralstat, potencialmente la primera terapia oral a demanda para el angioedema hereditario (HAE). El acuerdo incluye un pago inicial de 100 millones de dólares, un pago opcional de 22 millones de dólares tras la aprobación en EE. UU., y hasta 57 millones de dólares en hitos basados en las ventas. La FDA ha fijado una fecha objetivo PDUFA para el 17 de junio de 2025. Según el acuerdo, KalVista pagará a DRI regalías escalonadas que oscilan entre el 0,25% y el 5,00% en función de los umbrales anuales de ventas netas globales. DRI también ha mostrado interés en una posible inversión de capital de 5 millones de dólares en KalVista.

KalVista Pharmaceuticals (NASDAQ: KALV)는 DRI Healthcare Trust와 최대 1억8400만 달러의 합성 로열티 금융 계약을 체결하여 유전성 혈관부종(HAE) 치료를 위한 최초의 구강 요청 치료제인 세베트랄스타트의 상업적 출시를 지원합니다. 이 거래에는 1억 달러의 선급금, 미국 승인 시 선택적 2200만 달러 지급, 및 최대 5700만 달러의 판매 기반 이정표가 포함되어 있습니다. FDA는 PDUFA 목표 날짜를 2025년 6월 17일로 설정했습니다. 계약에 따라 KalVista는 연간 전세계 순매출 기준으로 0.25%에서 5.00%까지의 단계별 로열티를 DRI에 지급할 것입니다. DRI는 또한 KalVista에 대해 500만 달러의 자본 투자 가능성에 관심을 표명했습니다.

KalVista Pharmaceuticals (NASDAQ: KALV) a conclu un accord de financement par redevance synthétique avec DRI Healthcare Trust d'une valeur pouvant atteindre 184 millions de dollars pour soutenir le lancement commercial de sebetralstat, potentiellement la première thérapie orale à la demande pour l'angioedème héréditaire (HAE). L'accord comprend un paiement initial de 100 millions de dollars, un paiement optionnel de 22 millions de dollars lors de l'approbation aux États-Unis, et jusqu'à 57 millions de dollars en jalons basés sur les ventes. La FDA a fixé une date cible PDUFA au 17 juin 2025. En vertu de l'accord, KalVista paiera à DRI des redevances échelonnées comprises entre 0,25 % et 5,00 % en fonction des seuils annuels de ventes nettes mondiales. DRI a également exprimé son intérêt pour un éventuel investissement en capital de 5 millions de dollars dans KalVista.

KalVista Pharmaceuticals (NASDAQ: KALV) hat eine synthetische Lizenzfinanzierungsvereinbarung mit DRI Healthcare Trust im Wert von bis zu 184 Millionen Dollar abgeschlossen, um den kommerziellen Start von Sebetralstat zu unterstützen, das möglicherweise die erste orale Bedarfsbehandlung für hereditäres Angioödem (HAE) ist. Das Geschäft umfasst eine Vorauszahlung von 100 Millionen Dollar, eine optionale Zahlung von 22 Millionen Dollar nach der Genehmigung in den USA und bis zu 57 Millionen Dollar in umsatzbasierten Meilensteinen. Die FDA hat ein PDUFA-Zieldatum für den 17. Juni 2025 festgelegt. Im Rahmen der Vereinbarung wird KalVista DRI gestaffelte Lizenzgebühren zwischen 0,25 % und 5,00 % basierend auf jährlichen globalen Nettoumsatzschwellen zahlen. DRI hat auch Interesse an einer möglichen Kapitalbeteiligung von 5 Millionen Dollar an KalVista bekunden.

Positive
  • Secured $100 million immediate non-dilutive funding
  • Additional $79 million potential future payments
  • FDA PDUFA date set for June 17, 2025
  • First-in-class oral therapy potential for HAE treatment
  • Multiple global regulatory submissions completed
Negative
  • Future royalty payment obligations ranging from 0.25% to 5.00% of sales
  • Approval-dependent milestone payments create uncertainty
  • Increased royalty rate (5.00% to 6.00%) if optional $22M payment is accepted

Insights

This $184 million non-dilutive financing deal significantly strengthens KalVista's financial position ahead of sebetralstat's potential commercial launch. The structure is particularly attractive with $100 million upfront, $22 million upon approval and up to $57 million in sales milestones. The tiered royalty structure (starting at 5% for sales up to $500 million) is well-designed to maintain profitability at higher revenue levels.

The deal's timing is strategic, providing important capital for commercial infrastructure development without immediate equity dilution. DRI's potential $5 million equity investment, though non-binding, signals strong confidence in sebetralstat's market potential. The company's current market cap of $463 million suggests significant upside if sebetralstat achieves commercial success, particularly given the June 2025 PDUFA date and multiple international market opportunities.

Sebetralstat represents a potential paradigm shift in HAE treatment as the first oral on-demand therapy in a market currently dominated by injectable treatments. The drug's Fast Track and Orphan Drug designations from both FDA and EMA underscore its therapeutic importance. Global regulatory submissions across major markets (US, EU, UK, Switzerland, Australia, Singapore and planned Japan filing) indicate strong confidence in the clinical data package.

The HAE market opportunity is substantial, with current injectable treatments facing compliance challenges. An oral option could significantly expand the treatment-seeking population and potentially capture market share from existing therapies. DRI's willingness to make their first pre-approval investment in sebetralstat validates the drug's clinical profile and market potential.

–Provides up to $184 million investment to support commercial launch of sebetralstat which, if approved, will be the first and only oral on-demand therapy for HAE –

–Strengthens financial position as KalVista establishes global footprint for expected launches in multiple geographies in 2025–

CAMBRIDGE, Mass. & SALISBURY, England--(BUSINESS WIRE)-- KalVista Pharmaceuticals, Inc. (NASDAQ: KALV) (“KalVista”), today announced the closing of a synthetic royalty financing agreement with DRI Healthcare Trust (“DRI”) for up to $179 million, comprised of a $100 million upfront payment, a one-time $22 million optional payment upon U.S. product approval, and up to $57 million in a sales-based milestone payment. The proceeds of this transaction will be used to fund the commercialization of sebetralstat, which, if approved, is expected to be the first approved oral on-demand therapy to treat hereditary angioedema (“HAE”). KalVista has a New Drug Application for sebetralstat under review by the U.S. Food and Drug Administration (the “FDA”) with a Prescription Drug User Free Act (“PDUFA”) target action date of June 17, 2025.

DRI has also indicated an interest in investing up to $5 million in KalVista’s common stock in a private placement transaction. However, this indication of interest is not binding agreement or commitment to purchase KalVista’s common stock and DRI may decide to purchase more, less or no shares of KalVista’s common stock and KalVista may decide to not sell shares of its common stock to DRI.

“This financing arrangement is a pivotal step for KalVista, enabling us to continue building a global commercial organization ahead of the potential U.S. launch of sebetralstat in June 2025,” said Ben Palleiko, Chief Executive Officer of KalVista. “Moving forward, we are well-positioned to achieve long-term sustainable growth as we focus on delivering a potentially transformative treatment for people living with HAE. We appreciate DRI’s confidence in KalVista and sebetralstat to make this their first pre-approval investment.”

“Our royalty investment reflects DRI’s research-driven belief that sebetralstat has the potential to be the foundational treatment for all people living with HAE. We are excited to support the KalVista team’s continued transformation toward a commercial organization at this important stage,” said Navin Jacob, Chief Investment Officer of DRI.

“Acquiring a synthetic royalty on such a high-quality asset like sebetralstat showcases DRI’s willingness to develop partnerships with companies like KalVista who are seeking to meaningfully improve patients’ lives,” said Ali Hedayat, Acting Chief Executive Officer of DRI.

Synthetic Royalty Financing Terms

Under the terms of the synthetic royalty financing agreement, KalVista will immediately receive $100 million and be obligated to pay DRI a tiered royalty of 5.00% of annual global net sales up to and including $500 million, 1.10% of annual global net sales above $500 million and up to and including $750 million, and 0.25% of annual global net sales above $750 million. KalVista is entitled to a potential one-time sales-based milestone payment of $50 million if annual global net sales of sebetralstat meet or exceed $550 million in any calendar year before January 1, 2031.

If sebetralstat is approved prior to October 1, 2025, KalVista will have the option to receive a one-time payment of $22 million. If KalVista chooses to receive this optional payment, the royalty rate on net sales up to and including $500 million will increase from 5.00% to 6.00%, and the sales-based milestone amount will increase from $50 million to $57 million.

Jefferies LLC acted as exclusive financial advisor to KalVista on the synthetic royalty financing.

About Sebetralstat

Discovered and developed entirely by the scientific team at KalVista, sebetralstat is a novel, investigational oral plasma kallikrein inhibitor for the on-demand treatment of HAE. Sebetralstat received Fast Track and Orphan Drug Designations from the FDA, as well as Orphan Drug Designation and an approved Pediatric Investigational Plan from the European Medicines Agency (“EMA”).

About Hereditary Angioedema

HAE is a rare genetic disease resulting in deficiency or dysfunction in the C1 esterase inhibitor (“C1INH”) protein and subsequent uncontrolled activation of the kallikrein-kinin system. People living with HAE experience painful and debilitating attacks of tissue swelling in various locations of the body that can be life-threatening depending on the location affected. All currently approved on-demand treatment options require either intravenous or subcutaneous administration.

About KalVista Pharmaceuticals, Inc.

KalVista Pharmaceuticals, Inc. is a global pharmaceutical company whose mission is to develop and deliver life-changing oral medicines for people affected by rare diseases with significant unmet need. Sebetralstat, KalVista’s novel, investigational candidate for the oral, on-demand treatment of hereditary angioedema, is under regulatory review by the FDA with a PDUFA goal date of June 17, 2025. In addition, KalVista has completed marketing authorization application (“MAA”) submissions for sebetralstat to the EMA as well as regulatory authorities in the United Kingdom, Switzerland, Australia, and Singapore, and KalVista anticipates filing a MAA in Japan in late 2024.

For more information about KalVista, please visit www.kalvista.com or follow on social media at @KalVista and LinkedIn.

About DRI Healthcare Trust

DRI is managed by DRI Capital Inc. (“DRI Healthcare”), a pioneer in global pharmaceutical royalty monetization. Since its initial public offering in 2021, the Trust has deployed more than US$1.0 billion, acquiring more than 25 royalties on 20-plus drugs, including Eylea, Orserdu, Omidria, Spinraza, Stelara, Vonjo, Zejula and Zytiga. DRI’s units are listed and trade on the Toronto Stock Exchange in Canadian dollars under the symbol “DHT.UN” and in U.S. dollars under the symbol “DHT.U”. To learn more, visit drihealthcare.com or follow DRI on LinkedIn.

Forward-Looking Statements

This press release contains "forward-looking" statements within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words such as: "anticipate," "intend," "plan," "goal," "seek," "believe," "project," "estimate," "expect," "strategy," "future," "likely," "may," "should," "will" and similar references to future periods. These statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from what KalVista expects. Examples of forward-looking statements include, among others, the potential and timing of royalty payments, the potential timing of an equity investment in KalVista’s common stock, expectations regarding KalVista’s regulatory submissions, the anticipated royalty income and anticipated sales of products underlying such royalties, timing or outcomes of communications with the FDA, the success of any efforts to commercialize sebetralstat, and the ability of sebetralstat and other candidates in development to treat HAE or other diseases. Further information on potential risk factors that could affect KalVista’s business and financial results are detailed in its filings with the Securities and Exchange Commission, including in its annual report on Form 10-K for the year ended April 30, 2024, its quarterly reports on Form 10-Q, and its other reports that KalVista may make from time to time with the Securities and Exchange Commission. KalVista undertakes no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Jenn Snyder

Vice President, Corporate Affairs

(617) 448-0281

jsnyder@kalvista.com

Ryan Baker

Head, Investor Relations

(617) 771-5001

ryan.baker@kalvista.com

Source: KalVista Pharmaceuticals, Inc.

FAQ

What is the total value of KalVista's (KALV) royalty financing deal with DRI Healthcare?

The total value of the deal is up to $184 million, including $100 million upfront, $22 million upon approval, and up to $57 million in sales-based milestones.

When is the PDUFA date for KalVista's (KALV) sebetralstat?

The FDA PDUFA target action date for sebetralstat is June 17, 2025.

What royalty rates will KalVista (KALV) pay to DRI Healthcare?

KalVista will pay tiered royalties of 5.00% on sales up to $500M, 1.10% on sales between $500M-$750M, and 0.25% on sales above $750M.

What is the upfront payment KalVista (KALV) receives in the DRI Healthcare deal?

KalVista receives an immediate upfront payment of $100 million from DRI Healthcare.

KalVista Pharmaceuticals, Inc.

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