Geneva biotech Relief Therapeutics raises up to USD 11 million from royalty sales

Relief Therapeutics has entered into an agreement with SWK Funding LLC to secure up to USD 11 million in non-dilutive financing through the sale of royalty interests to support its clinical development pipeline.

Relief Therapeutics, a Geneva-based biopharmaceutical company listed on the SIX Swiss Exchange, has announced a significant financial agreement with SWK Funding LLC, a subsidiary of SWK Holdings Corporation. The agreement includes the sale of royalty interests in several of Relief’s products, including OLPRUVA®, GOLIKE® and CAMBIA®, for a potential total of up to USD 11 million. These funds will be used to support the clinical development of Relief’s innovative treatment for epidermolysis bullosa, RLF-TD011, and other pipeline advancements.

Under the terms of the agreement, Relief will receive an initial cash payment of USD 5.75 million, with the potential for an additional USD 5.25 million based on the achievement of certain near-term milestones. These milestones include a payment of USD 3.25 million if OLPRUVA’s quarterly net sales reach USD 1.5 million by the end of the third quarter of 2025 and USD 2 million if Zevra Therapeutics Inc. receives FDA approval for arimoclomol, a treatment for Niemann-Pick disease type C (NPC), by the end of 2024.

SWK has acquired all future OLPRUVA royalties from Relief’s previous agreement with Acer Therapeutics Inc. as well as all future royalties and milestone payments from the commercialization agreement for the GOLIKE product family with Eton Pharmaceuticals Inc. Despite the sale, Relief retains significant upside potential. SWK will return to Relief 80% of OLPRUVA royalties in excess of USD 2.25 million per year and all royalties in excess of USD 4.5 million. For GOLIKE, SWK will return 80% of royalties in excess of USD 1.32 million per year and all royalties in excess of USD 1.98 million. The agreement will terminate when SWK has received 2.75 times its invested capital.