Nuvation Bio nabs $250 million to launch cancer drug

US oncology-focused Nuvation Bio (NYSE: NUVB) today announced non-dilutive financings of up to $250 million with Sagard Healthcare Partners (Sagard), with the news pushing its shares up 6.6% to $2.10 in pre-market activity.

The transaction comprises a royalty interest financing of $150 million and a senior term loan of up to $100 million, which Nuvation says will strengthen its balance sheet to fully fund commercialization of taletrectinib in the USA, if approved, and development of the company’s current clinical-stage pipeline. The transaction also provides Nuvation with a path to potential profitability without the need to raise additional capital.

“This transaction is a significant milestone for Nuvation Bio as we prepare to bring taletrectinib to the US market, subject to FDA approval, in mid-2025,” said Dr David Hung, founder, president, and chief executive of Nuvation Bio. “With these financings, we are well positioned to launch taletrectinib and drive continued development of our clinical-stage pipeline - all without the need for additional fundraising. This also improves our flexibility to pursue strategic opportunities to deploy our capital. We are thrilled to have support from Sagard and appreciate their shared confidence in taletrectinib and Nuvation Bio as we continue toward our goal of improving outcomes for patients with cancer.”