Paul Capital Healthcare committed to provide up to $100m to Phase III Development Company S.A.R.L (“P3D”), a company recently established to assist in the management and funding of clinical trials in the European Union.
P3D announced that it had entered into an agreement with a major global pharmaceutical company to fund the label expansion of a currently approved therapeutic product.
Under the terms of the agreement, P3D will assist in the management and funding of phase III clinical trials in additional indications for the product.
In return, the pharmaceutical company will provide P3D with development and regulatory milestone payments related to the phase III trials, a percentage of certain out-licensed product royalties, and a percentage of the revenue it generates on the product once it is approved in the additional indications that are the subject of the clinical trials.
Ken Macleod, Ph.D., Partner in the London office of Paul Capital Healthcare, said: “By funding P3D, we can provide a truly novel means of assisting pharmaceutical companies seeking external financing and risk sharing in the development of their late stage drug pipelines. This is truly an important event in the healthcare product finance industry.
“For years, our industry has been looking for ways to make this type of collaboration work, and we now have the right win-win structure. Companies can now benefit by accessing risk capital to support a compelling growth opportunity while minimizing the impact on internal financial resources, and Paul Capital Healthcare through P3D has an opportunity to participate in a diversified pool of royalties, development milestones and revenue interests with the potential for exciting returns”.