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WARRINGTON, Pa. - Windtree Therapeutics, Inc. (NASDAQ:WINT), a micro-cap biotech company with a market capitalization of $2.93 million, has received a non-binding letter of intent to sell its preclinical oncology aPKCi inhibitor platform for $7 million upfront, the company announced Wednesday. According to InvestingPro analysis, the company’s shares are currently trading below their Fair Value.
The potential deal includes up to $130 million in milestone payments and high single-digit royalties that could reach $1.5 billion over the drug’s lifetime. The company has 21 days to close the oncology portion of the transaction. This deal could provide crucial funding for Windtree, which InvestingPro data shows has been rapidly burning through cash with an EBITDA of -$24.12 million and a concerning current ratio of 0.25.
According to the press release statement, the agreement also includes options with additional consideration to acquire Windtree’s cardiovascular clinical and preclinical stage drug candidates, as well as its agreement to act as manufacturing agent for an FDA-approved product from Evofem Biosciences. InvestingPro subscribers can access 12 additional key insights about Windtree’s financial health and growth prospects.
"We do not view the preclinical oncology aPKCi assets as a core part of our vision going forward but want to make sure that our current shareholders benefit from the development of the assets," said Jed Latkin, Chief Executive Officer of Windtree. This strategic shift comes as the company’s stock has experienced a significant decline, with a one-year total return of -99.45%.
The upfront payment would be made in cash or freely tradable stock, providing the company with potential non-dilutive funding.
Windtree Therapeutics describes itself as a diversified company focused on becoming revenue-generating across multiple growing industries to drive toward overall profitability.
The transaction remains subject to final agreement and closing conditions. The company has indicated it is evaluating options to increase shareholder value by reducing cash burn and focusing on near-term opportunities.
In other recent news, Windtree Therapeutics has reported several significant developments. The company has announced a strategic move to accept cryptocurrency payments, aiming to align with digital commerce trends and diversify its operations. Additionally, Windtree Therapeutics is seeking 7.5 years of U.S. market exclusivity for its cardiac drug istaroxime, pending FDA approval, which could enhance its competitive position. In financial matters, the company issued Senior Secured Promissory Notes to raise $250,000, providing additional funding for its operations. Furthermore, Windtree has regained compliance with Nasdaq’s minimum bid price requirement, ensuring its continued listing on the stock market. The company also experienced a change in its Board of Directors, with the resignation of Craig Fraser, reducing the board size from five to four members. These recent developments reflect Windtree’s ongoing efforts to strengthen its financial standing and advance its clinical programs.
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