JWCA advises Radius Health, Inc. on the partial sale of its global royalty and milestone rights on ORSERDU® for up to $140 million while retaining over $200 million in future milestones

August 2023 | read press release

Transaction Background

Radius Health, Inc. (“the Company”) hired J. Wood Capital Advisors as its Financial Advisor to advise on a capital raise based on the Company’s right to receive royalties and milestones from global net sales of ORSERDU® (elacestrant), the first and only treatment approved for ER+/HER2-, ESR1- mutated advanced or metastatic breast cancer and the first oral SERD. Menarini Group develops and markets ORSERDU®.

Objectives:

• Pull forward value and proceeds from a passive, non-core royalty stream

• Maximize near-term proceeds to continue supporting the Company’s business and financial plan

• Retain upside value in elacestrant via over $200 million in future commercial sales milestones given the additional clinical stage trials underway

• Achieve competitive cost of capital

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

• Analyzed various offers 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

• Radius raised significant outside capital from a non-core asset without adding debt or dilution, allowing the Company to reinvest in its core bone health business and pursue business development opportunities

• Achieved financing outcome that balanced the Company’s objectives, including maximizing both near-term proceeds and retaining significant future value at a competitive cost of capital