Intarcia Therapeutics has announced a $225 million investment which will go largely to pay for a planned trial of its once-a-year ITCA 650 pump and drug combination device aimed at revolutionizing the market for type 2 diabetes, establishing it as the standard of care.
The undisclosed investors in the Boston-based company will get 1.5 percent of future global net sales of the device, with the option to convert that royalty into Intarcia common stock at a $5.5 billion company valuation during an agreed-upon conversion period. Morgan Stanley acted as the agent for the deal.
Including this investment, the company has now raised more than $1 billion in financing in the last five years, with more expected in coming years in milestone payments.
“This large and innovative financing announced today is another first-of-its-kind in our industry, and it shows investor confidence in our pivotal data, our partnerships and our overall approach to a huge unmet need and opportunity in type 2 diabetes,” said Intarcia CEO Kurt Graves in a statement.
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