Windtree Therapeutics eliminates $15M contingent liability to Deerfield

Windtree Therapeutics announced that the Company entered an Exchange and Termination Agreement with affiliates of Deerfield Management Company pursuant to which Deerfield has agreed to terminate its rights under the Company’s 2017 Exchange and Termination Agreement to receive up to $15,000,000 in development and commercial milestone payments associated with AEROSURF, an acute pulmonary drug/device combination intended to treat premature infants with respiratory distress syndrome. Windtree out-licensed global rights to AEROSURF in 2022. In exchange for Deerfield terminating its rights to receive any milestone payments, the Company agreed to issue to Deerfield 608,272 shares of the Company’s common stock and to pay Deerfield a $100,000 cash payment upon execution of the agreement. In addition, the Company agreed to pay Deerfield an additional $100,000 on the earlier of January 24, 2025 or the Company receiving a specified amount of gross proceeds from debt or equity financings occurring on or after the agreement date.