Dare Bioscience secures $22M in non-dilutive strategic royalty financing

Dare Bioscience (DARE) has closed a royalty monetization transaction with XOMA (XOMA). Dare received $22 million in gross proceeds at close and, following a pre-specified total return to XOMA, XOMA will make upside-sharing milestone payments to Dare equal to 50% of all remaining cash flows sold to XOMA under the transaction. The transaction involves the sale of the remaining royalties and potential milestones based on net sales of XACIATO payable to Dare under its global license agreement with Organon after deducting all amounts due on such royalties and milestone payments to third-party licensors, and all payments owed by Dare under its existing royalty interest financing agreement with United in Endeavour, LLC, 25% of the potential $20 million payment due to Dare under its license agreement with Bayer relating to Ovaprene, in the event Bayer, in its sole discretion, elects to make the payment1, and a 4% synthetic royalty on net sales of Ovaprene and a 2% synthetic royalty on net sales of Sildenafil Cream, subject to an automatic decrease to 2.5% and 1.25%, respectively, as described below. Once XOMA achieves a pre-specified total return on its investment, XOMA will pay to Dare 50% of each successive $22 million that XOMA receives under the transaction agreements, and, once XOMA achieves another pre-specified total return on its investment, the synthetic royalty rates on net sales of Ovaprene and Sildenafil Cream will automatically decrease to 2.5% and 1.25%, respectively, which, after taking into account the $11 million payments to Dare after XOMA achieves the initial pre-specified total return, results in a lower effective royalty rate.