JWCA advises CymaBay on its $100 million Phase 3 clinical trial financing for seladelpar in PBC

August 2021 | read press release

Transaction Background

CymaBay Therapeutics, Inc. (“the Company”) hired J. Wood Capital Advisors as its Financial Advisor to advise on a non-dilutive capital raise to fund the Phase 3 development program for seladelpar in primary biliary cholangitis (PBC), including the Phase 3 RESPONSE clinical trial

Objectives:

• Finance the company efficiently with upfront risk-sharing non-dilutive capital from a strong long-term partner

• Retain strategic and operational flexibility with full worldwide commercial rights to seladelpar

• Achieve a competitive cost of capital relative to other available financing options and program risk

• Balance payment obligations with product launch cashflow needs and provide flexibility for future financing

JWCA designed and ran a competitive process that could best help CymaBay achieve its objectives. Upon obtaining terms from lenders, JWCA:

• Analyzed different structures to help the Company select the proposal that best met its objectives

• Negotiated on the Company’s behalf to improve valuation and transaction structure

Results

Helped the Company to raise non-dilutive capital to secure product development funding through pivotal Phase 3 trials, without adding debt or dilution, or entering into a corporate partnership on the asset

Achieved financing outcome that met the Company’s objectives, including minimizing the total return cap