SWK Holdings reports Q4 EPS 23c vs. 22c last year

Report revenue $9.9M vs. $9.8M last year. “The fourth quarter concluded a productive 2023 for SWK which we believe sets the stage for improved financial returns in 2024. During the quarter we improved our balance sheet through the issuance of $33.0 million of senior unsecured notes and a $15.0 million upsizing of our credit facility, we closed four transactions, ending the year with an all-time high gross finance receivables balance of $288.4 million, and the core finance portfolio generated a 14.0% effective yield. In March we signed an Exclusive Option and Asset Purchase agreement with a strategic partner granting the partner a two-year exclusive option to purchase certain Enteris tangible assets for $6 million. In consideration for the grant of the Option, the strategic partner agreed to pay Enteris a low-single digit million dollar option fee with the first portion payable upon execution of the agreement and the second portion payable by January 1, 2025 if the option is not exercised by that time. In addition, the strategic partner agreed to guarantee to Enteris minimum annual revenue payments in the mid-single digit million dollar amounts for the calendar years 2024 and 2025. The agreement immediately reduces the Enteris cash burn and will continue to do so over the life of the agreement. The agreement does not include Enteris Intellectual Property including the Cara Therapeutics’ license and associated milestones and royalties, other licenses, the Peptelligence platform, or internally developed 505b2 programs. SWK will continue to work with Enteris management to monetize these assets. The Exclusive Option and Asset Purchase agreement validates the progress our colleagues at Enteris have made over the past year and will provide additional resources for the team to build the Enteris CDMO platform.Moreover, the agreement allows SWK to focus on our core Specialty Finance segment and we expect the reduced Enteris cash burn will permit our shareholders to benefit from our Specialty Finance segment earnings to a greater degree. We are bullish on SWK’s prospects in 2024 given our increased finance receivables portfolio, available liquidity to fund new deals, and continued demand for our customized loan and royalty products targeting innovative life science companies.” Book value per share was $22.43 as of December 31, 2023, compared to $21.80 as of December 31, 2022.