Fourth Quarter and Full Year 2022 Financial
Results to be Announced in March
DALLAS, Jan. 31,
2023 /PRNewswire/ -- 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 an update on its team,
portfolio, as well as the progress and achievements of its borrower
partners.
"The fourth quarter was a productive period at SWK as we grew
our team, increased the size of our credit facility to up to
$50.0 million, and closed a royalty
transaction," stated Jody Staggs,
President and CEO of SWK. "Portfolio highlights included the
purchase of a two-asset royalty stream for $15.4 million and an additional $4.0 million advance to existing borrower, Aziyo
Biologics, which was triggered by performance milestones. We
also sold the remaining interest in our Narcan royalty for
$2.5 million compared with a
September 30, 2022 GAAP value of
approximately $0.5 million."
Mr. Staggs continued: "Several of our borrower partners reported
positive developments in late 2022 and early 2023 with many raising
equity capital during one of the most challenging capital markets
in the past decade. We believe this further validates SWK's
underwriting as these companies possess life science products that
are valued by clinicians, patients, the healthcare system, and
investors."
Mr. Staggs concluded: "SWK is well positioned for what is
expected to be an active 2023 based on heightened interest in our
non-dilutive financial offerings. We are actively pursuing
several financing opportunities while simultaneously working to
optimize our balance sheet."
Human Resources Update
In January 2023, Jody Staggs was elevated from "interim" to
"permanent" CEO, and Laurie Dotter
was named Chair of the Board of Directors.
In November, Agha Abbas joined
SWK as an Associate. Mr. Abbas was formerly employed in the
Leveraged Credit department at JP Morgan.
Portfolio Additions
Duo Royalty Stream
SWK purchased a two-asset royalty
stream for $15.4 million, consisting
of a royalty on U.S. sales of a cystic fibrosis drug and a royalty
on Japanese sales of a women's health drug. SWK hedged the majority
of yen exposure on the Japanese royalty stream.
Aziyo Biologics
In December, SWK funded the
$4.0 million second tranche of its
existing $25.0 million credit
facility to Aziyo Biologics. The funding was triggered by
Aziyo achieving certain performance milestones coupled with an
equity raise.
Portfolio Divestments
Narcan Royalty
In November, SWK received a
$2.5 million payment in connection
with a legal settlement between Opiant and Emergent
BioSolutions. SWK has no further economic interest in
Narcan.
Bioventus and Harrow Health Equity
During the fourth
quarter SWK sold all its shares in Harrow Health and Bioventus for
proceeds totaling $3.8
million.
SWK Holdings Portfolio Updates
Acer Therapeutics
Acer (Nasdaq: ACER) is a
pharmaceutical company focused on the acquisition, development, and
commercialization of therapies for serious rare and
life-threatening diseases with significant unmet medical needs.
- In December, Acer Therapeutics reported the FDA approval of
Olpruva, an oral suspension for the treatment of patients with
certain urea cycle disorders.
Aziyo Biologics Inc.
Aziyo Biologics (Nasdaq: AZYO) is
a biologics company with a portfolio of regenerative products aimed
at improving compatibility between medical devices and the patients
they treat.
- In December, Aziyo announced the pricing of an underwritten
public common equity offering that resulted in gross proceeds of
$11.2 million.
- Aziyo announced in January that it anticipates fourth quarter
net sales of $12.5-$12.7 million, an increase of 15-17% compared to
the same prior year period.
- As previously mentioned, in December SWK advanced the
$4.0 million second tranche of its
existing $25.0 million credit
facility in connection with the aforementioned equity raise and as
a result of fulfilment of certain performance milestones.
Biolase, Inc.
Biolase, Inc. (Nasdaq: BIOL) is a global leader in dental
lasers.
- In January 2023, Biolase
announced a public offering of stock and warrants that raised
approximately $9.8 million, before
underwriting discounts and commissions.
- In January 2023, Biolase
announced fourth quarter revenue was expected to increase 13%-16%
year-over-year to $14.0-$14.4 million.
- In November, Biolase announced third quarter revenue increased
26% year-over-year to $12.0
million.
Biotricity
Biotricity is a medical diagnostic and
consumer healthcare technology company specializing in the
development of comprehensive remote health monitoring solutions for
the medical and consumer markets.
- In January 2023, Biotricity
signed a distribution agreement with a top-5 distributor for its
cardiac monitoring solutions, Bioflux® and Biotres™.
- In January 2023, Biotricity
signed an agreement with a leading group purchasing organization
for national distribution of its cardiac monitoring solutions,
Bioflux® and Biotres™.
Eton Pharmaceuticals
Eton Pharmaceuticals, Inc.
(Nasdaq: ETON) is a specialty pharmaceutical company focused on
developing innovative products utilizing the FDA's 505(b)(2)
regulatory pathway.
- In January, Eton announced that the FDA has accepted the
company's New Drug Application response for dehydrated alcohol
injection for treating methanol poisoning. The FDA has assigned a
PDUFA target action date of June 27,
2023.
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, whose
Peptelligence® and ProPerma® drug delivery technologies
create oral formulations of peptide-based and BCS class II, III,
and IV small molecules. 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.
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SOURCE SWK Holdings Corporation