Nanobiotix Secures $71 Million Funding for Cancer Drug Development

Nanobiotix, a biotechnology company developing innovative cancer treatments, has secured a significant financial lifeline to support the continued development of its Johnson & Johnson-partnered cancer drug. The company has entered into a $71 million non-dilutive funding agreement with HealthCare Royalty (HCRx), providing a crucial boost to its cash reserves and extending its financial runway into early 2028.

Strategic Funding Agreement with HCRx

The funding arrangement with HCRx includes an upfront payment of $50 million, with an additional $21 million to be provided within a year, subject to certain conditions. This non-dilutive capital injection comes at a critical time for Nanobiotix, which had previously warned of insufficient funds to support its operations over the next 12 months.

Under the terms of the agreement, Nanobiotix will repay the debt through a portion of royalties on the first $1 billion of net sales and certain regulatory and commercial milestone payments. The company is obligated to repay $124 million if this goal is reached by 2030, or $178 million if it takes longer. Additionally, HCRx will be entitled to a reduced share of royalties for the first decade of the drug's availability in the U.S., capped at $14.9 million per year.

JNJ-1900: A Novel Approach to Cancer Treatment

The focus of this funding is JNJ-1900, also known as NBTXR3, a radiotherapy-activated drug currently in phase 3 trials for locally advanced head and neck squamous cell cancers. This innovative treatment utilizes nanosized particles with a specially designed core to enhance the local absorption of ionizing radiation, potentially improving the efficacy of conventional radiotherapy.

Clarke Futch, CEO of HCRx, expressed enthusiasm for the partnership, stating, "The differentiated nature of their physics-based approach and the compelling clinical profile of JNJ-1900 (NBTXR3) align with our mission of supporting innovative therapies that address areas of significant unmet need."

Financial Implications and Future Outlook

This funding agreement marks a significant turning point for Nanobiotix, which had previously faced doubts about its ability to fund the ongoing phase 3 trial. Earlier this year, the company amended its agreement with Johnson & Johnson to reduce its financial commitments to the JNJ-1900 development program.

With this new influx of capital, Nanobiotix claims to have established the financial foundation for self-sustaining long-term growth. The company anticipates receiving milestone payments for JNJ-1900's development in both head and neck cancer and lung cancer during the period covered by this funding.

As Nanobiotix continues to advance its innovative cancer treatment platform, this strategic funding partnership with HCRx positions the company to potentially redefine standards of care and establish a new class of cancer therapy.