Iterum Therapeutics announces extension of term of promissory note

Iterum Therapeutics (ITRM) reported that Pfizer (PFE) has agreed to extend the term for payment of the regulatory milestone payment of $20M until October 25, 2029. Pursuant to the license agreement entered into on November 18, 2015, by and among the Company, Iterum Therapeutics International Limited and Pfizer, ITIL agreed to make a regulatory milestone payment of $20.0 million to Pfizer upon the approval of oral sulopenem for commercial sale in the United States by the U.S. Food and Drug Administration. The Company had the option to deliver notice of its election to defer such payment for up to two years from the date of approval and have a promissory note issued by ITIL in the amount of the Milestone Payment to Pfizer. After receiving FDA approval for ORLYNVAH on October, 25, 2024, the Company notified Pfizer on October 28, 2024, that it was electing to defer payment of the Milestone Payment for two years, or until October 25, 2026, and a promissory note was issued to Pfizer by ITIL. On May 13, 2025, the Company and ITIL entered into an amended and restated promissory note and a letter agreement relating to the A&R Note and amending the Pfizer License Agreement. The A&R Note extends the Deferral Period by an additional three years, or until October 25, 2029. In connection with the extension, ITIL agreed in the A&R Note to increase the annual rate of interest from eight percent to ten percent on a daily compounded basis, beginning on October 26, 2026. ITIL also agreed that it would not, directly or indirectly, create, incur, assume, guaranty or otherwise become liable for any indebtedness that is senior in right of payment to the A&R Note, except for indebtedness incurred with the consent or waiver of Pfizer, or create, grant or incur any lien on any of its property or assets, subject to specified exceptions. ITIL also agreed to pay Pfizer a transaction fee and to pay Pfizer’s legal expenses.