Trevena Announces $2M Non-Dilutive Financing Tranche and Reduction in Outstanding Liabilities in Connection with Existing ex-US Royalty Financing

Rhea-AI Summary

Trevena (Nasdaq: TRVN) announced a $2 million non-dilutive financing tranche from R-Bridge Healthcare Fund, with potential for an additional $8 million based on OLINVYK's US commercialization milestones. The amendment also reduces Trevena's outstanding liabilities by $10 million. As part of the deal, Trevena transferred certain Chinese IP to R-Bridge, amended existing warrants to a 15% premium of current stock price, and extended their exercise period to five years. The cap on US royalties payable was increased to $12 million. Trevena had previously received $30 million in non-dilutive funding from R-Bridge.

Positive

• Received $2 million non-dilutive financing tranche.
• Potential to receive up to $8 million more based on milestones.
• Reduced outstanding liabilities by $10 million.

Negative

• Transfer of OLINVYK's Chinese IP.
• Amended warrants to lower exercise price and extended the exercise period.

Insights

Financial Analyst

Trevena's announcement regarding the $2 million non-dilutive financing and potential for an additional $8 million is significant for the company's financial health. The non-dilutive nature of this financing is especially important as it doesn't dilute existing shareholders' equity. Additionally, reducing outstanding liabilities by $10 million improves the company's balance sheet, potentially enhancing its creditworthiness and financial stability.

Non-dilutive financing means that the company is raising money without issuing new shares, thus avoiding dilution of existing shareholders' stakes. This is typically seen as a positive move, as it indicates the company's ability to secure funds without needing to compromise shareholder value.

Long-term impacts: The amendment to the existing royalty financing terms, such as the transfer of OLINVYK Chinese IP and adjusted warrant terms, reflects strategic financial management. While the transfer of IP might sound concerning, it can be a strategic move to reduce liabilities without affecting the core US market, which holds significant revenue potential. The adjusted warrant terms could attract more investment by making it more favorable for investors.

Considerations: Investors should keep an eye on the achievement of US partnering and commercialization milestones for OLINVYK, as future potential tranches are linked to these milestones. Also, the increase in US royalty cap indicates confidence in OLINVYK's market performance.

Market Research Analyst

The details around the commercial milestones for OLINVYK are important for understanding Trevena's future revenue streams. OLINVYK, being a novel treatment in the CNS disorder segment, has a unique market positioning. However, its success is contingent on effective commercialization and market penetration.

Market dynamics: The CNS market is highly competitive with numerous players, but OLINVYK's unique selling proposition could enable it to capture significant market share. The $8 million in potential additional tranches indicates confidence in meeting these milestones, which is a strong positive signal.

Strategic impacts: By focusing on US partnering, Trevena is likely aiming to leverage larger pharmaceutical companies' distribution networks and market expertise. This approach minimizes Trevena's risk and investment in extensive marketing efforts while potentially accelerating market entry and revenue generation.

Investor takeaway: The strategic amendment to the royalty financing shows a smart balance of risk and reward. Retail investors should track OLINVYK's progress and market reception to gauge the likelihood of Trevena securing further tranches and achieving a positive cash flow.

Trevena expects to receive a non-dilutive $2 million tranche and may be eligible for up to an additional $8 million based on OLINVYK US partnering and commercialization milestones

Trevena further expects a $10 million reduction in liabilities associated with its ex-US royalty financing

CHESTERBROOK, Pa., July 08, 2024 (GLOBE NEWSWIRE) -- Trevena, Inc. (Nasdaq: TRVN), a biopharmaceutical company focused on the development and commercialization of novel medicines for patients with central nervous system (CNS) disorders, today announced an amendment (the “Amendment”) to its March 2022 ex-US royalty-based financing (the “Royalty Financing”) with R-Bridge Healthcare Fund, L.P. (R-Bridge).

Pursuant to the Amendment, Trevena will receive (i) a $2 million payment from R-Bridge to Trevena, and (ii) $8 million in future potential tranches to Trevena based on the achievement of certain US partnering and commercial milestones for OLINVYK. In addition, the outstanding liability in connection with the Royalty Financing will be reduced by $10 million in connection with the Amendment. Trevena previously received $30 million in non-dilutive funding under the Royalty Financing.

Also as part of the Amendment, (i) certain OLINVYK Chinese IP that had been previously pledged to R-Bridge under the Royalty Financing was transferred to R-Bridge, (ii) warrants that had been issued to R-Bridge as part of the Royalty Financing were amended to reduce the exercise price to a 15% premium to the current stock price and to extend the exercise period to five years from the date of the Amendment, and (iii) the existing cap on US royalty payable to R-Bridge was increased from $10 million to $12 million (with no minimum or fixed payments).

Forward-Looking Statements

Any statements in this press release about future expectations, plans and prospects for the Company, including statements about the Company’s strategy, future operations, clinical development and trials of its therapeutic candidates, plans for potential future product candidates and other statements containing the words “anticipate,” “believe,” “estimate,” “expect,” “intend,” “may,” “plan,” “predict,” “project,” “suggest,” “target,” “potential,” “will,” “would,” “could,” “should,” “continue,” and similar expressions, constitute forward-looking statements within the meaning of The Private Securities Litigation Reform Act of 1995. Actual results may differ materially from those indicated by such forward-looking statements as a result of various important factors, including: the status, timing, costs, results and interpretation of the Company’s clinical trials or any future trials of any of the Company’s investigational drug candidates; the uncertainties inherent in conducting clinical trials; expectations for regulatory interactions, submissions and approvals, including the Company’s assessment of discussions with FDA; availability and adequacy of funding, including whether additional tranches of Royalty Financing will become available; uncertainties related to the Company’s intellectual property; other matters that could affect the availability or commercial potential of the Company’s therapeutic candidates and approved product; and other factors discussed in the Risk Factors set forth in the Company’s Annual Report on Form 10-K and Quarterly Reports on Form 10-Q filed with the Securities and Exchange Commission (SEC) and in other filings the Company makes with the SEC from time to time. In addition, the forward-looking statements included in this press release represent the Company’s views only as of the date hereof. The Company anticipates that subsequent events and developments may cause the Company’s views to change. However, while the Company may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so, except as may be required by law.

About Trevena

Trevena, Inc. is a biopharmaceutical company focused on the development and commercialization of innovative medicines for patients with CNS disorders. The Company has one approved product in the United States, OLINVYK^® (oliceridine) injection, indicated in adults for the management of acute pain severe enough to require an intravenous opioid analgesic and for whom alternative treatments are inadequate. The Company’s novel pipeline is based on Nobel Prize winning research and includes three differentiated investigational drug candidates: TRV045 for diabetic neuropathic pain and epilepsy, TRV250 for the acute treatment of migraine and TRV734 for maintenance treatment of opioid use disorder.

For more information, please visit www.Trevena.com 

About R-Bridge (CBC Group)

CBC Group is Asia’s largest and most active healthcare-dedicated investment firm with over US$8.8 billion AUM. With a diversified, multi-product strategy, CBC Group is focused on platform-building, buyout, private credit and royalties, and real estate, across the healthcare space, including pharmaceutical, biotech, medical technology, and healthcare services. CBC has a leading team of investment, industry and portfolio management professionals, headquartered in Singapore with additional offices in New York, Shanghai, Beijing, Hong Kong, London and Seoul.

Founded in February 2020, R-Bridge Healthcare is an affiliate of CBC Group and it is dedicated in providing alternative, non-dilutive financing backed by royalties, revenue interest and other cash flows generated by the sale of healthcare products and services in Asia-Pacific region, the first of its kind for the asset class and the region. R-Bridge provides additional sources of capital to leading healthcare companies to continue their extraordinary growth trajectories, commercializing their products and services in Asia-Pacific region and on a global scale.

For more information, please contact:

Company Contact:

Bob Yoder
SVP and Chief Business Officer
Trevena, Inc.
(610) 354-8840

FAQ

What recent financing did Trevena (TRVN) secure?

Trevena announced a $2 million non-dilutive financing tranche from R-Bridge Healthcare Fund.

What potential future funding could Trevena (TRVN) receive?

Trevena may receive up to an additional $8 million based on OLINVYK's US commercialization milestones.

How much did Trevena (TRVN) reduce its liabilities by?

Trevena reduced its outstanding liabilities by $10 million.

What changes were made to the warrants issued to R-Bridge under the royalty financing?

The warrants were amended to a 15% premium of the current stock price and the exercise period was extended to five years.

What was the increase in the US royalty cap payable to R-Bridge?

The cap on US royalties payable to R-Bridge was increased from $10 million to $12 million.

What Chinese IP did Trevena transfer to R-Bridge?

Trevena transferred certain OLINVYK Chinese IP to R-Bridge.