Savara Inc. entered into a $75 million royalty‑funding agreement with RTW Investments, LP, to support the potential launch of its lead product MOLBREEVI for autoimmune pulmonary alveolar proteinosis. The financing is non‑dilutive and will provide a tiered single‑digit royalty on U.S. net sales, capped at an undisclosed amount, and will become available only if the drug receives FDA approval.
The agreement is contingent on FDA approval by March 31 2027 and is subject to customary conditions. Savara previously submitted a Biologics License Application for MOLBREEVI in March 2025, received a “Refusal to File” letter in May 2025 due to insufficient CMC data, and plans to resubmit the application in December 2025.
As of December 31 2024, Savara reported approximately $196.3 million in cash, cash equivalents, and short‑term investments, while experiencing increasing net losses in recent quarters. The royalty‑funding deal is intended to strengthen the balance sheet and reduce the need for additional equity or debt issuances.
The company also announced a proposed public offering of common stock and pre‑funded warrants on the same day, indicating a broader capital‑raising strategy. Savara is currently subject to securities fraud lawsuits alleging misleading statements about the MOLBREEVI BLA submission and its chemistry, manufacturing, and controls.
The non‑dilutive nature of the financing is significant for a clinical‑stage biopharmaceutical company with no revenue, as it allows Savara to fund the potential launch of MOLBREEVI without diluting existing shareholders.
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