SUBSEQUENT EVENTS

6 Months Ended

Jun. 30, 2022

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Melinta License Agreement

On July 26, 2022, the Company entered into a License Agreement, or the Melinta License Agreement, with Melinta Therapeutics, Inc., or Melinta, under which the Company granted Melinta an exclusive license to develop and commercialize products that contain or incorporate rezafungin in the U.S.

Melinta will be solely responsible for the commercialization of rezafungin in the U.S., at its sole expense. The Company will be responsible for conducting an agreed upon development plan that includes, among other activities, completion of the ongoing ReSPECT Phase 3 pivotal clinical trial for the prevention of invasive fungal infections in adult allogeneic blood and marrow transplant recipients. The Company will initially remain the holder of all U.S. Food and Drug Administration, or FDA, submissions, including the rezafungin IND and New Drug Application, or NDA. The FDA submissions will transfer to Melinta on a Transfer Date determined based on the status of the ReSPECT trial and the associated supplemental NDA for the prophylaxis indication. Following the Transfer Date, the Company will remain financially responsible for post-marketing commitments and other remaining development obligations and the costs for those will be deducted from royalties owed to the Company by Melinta.

The total potential transaction value is $460.0 million, including a $30.0 million upfront payment and up to $430.0 million in regulatory and commercial milestones. In addition, the Company is entitled to tiered royalties on U.S. sales in the low double digits to mid-teens.