Street Calls of the Week
Clearside Biomedical, Inc. (NASDAQ:CLSD), a biotechnology company currently valued at $27.16 million, announced Monday that it entered into an Omnibus Amendment Agreement on September 4 with Clearside Royalty LLC, Healthcare Royalty Partners IV, L.P., and HCR Clearside SPV, LLC. According to InvestingPro data, the company maintains impressive gross profit margins of 90.47%, despite recent market challenges. The amendment modifies several agreements originally executed in August 2022, including a purchase and sale agreement, a contribution and servicing agreement, and a pledge and security agreement.
Under the original purchase agreement, Clearside Royalty LLC, a subsidiary of Clearside Biomedical, sold certain rights to receive royalty and milestone payments related to XIPERE (triamcinolone acetonide injectable suspension) and the company’s SCS Microinjector technology to Healthcare Royalty Partners IV. In exchange, Clearside Royalty LLC received $32.5 million. The company also pledged the capital stock of Clearside Royalty LLC to secure its obligations under the agreement.
According to the amendment disclosed in the SEC filing, Clearside Royalty LLC received an additional $3 million from Healthcare Royalty Partners IV. This amount was then paid to Clearside Biomedical in exchange for the remaining assets related to its SCS Microinjector technology. For investors seeking deeper insights into Clearside’s financial health and growth prospects, InvestingPro offers comprehensive analysis with 14 additional ProTips and detailed financial metrics in its Pro Research Report.
The amendment also reduces the aggregate royalty payments required for the purchase agreement to expire from $110.5 million to $106.5 million. In addition, Healthcare Royalty Partners IV agreed to specified exceptions to its right to receive change of control payments and waived its right to foreclose on the capital stock of Clearside Royalty LLC in certain circumstances.
All other terms and conditions of the original agreements remain in effect, according to the company. Clearside Biomedical stated it intends to file the full text of the amendment as an exhibit to its quarterly report for the period ending September 30, 2025.
This information is based on a statement in a press release and details disclosed in a recent SEC filing.
In other recent news, Clearside Biomedical has received approval from Health Canada for its XIPERE treatment, designed for uveitic macular edema. This approval marks an expansion of XIPERE’s availability to Canada, adding to its existing approvals in the United States, Australia, and Singapore, with regulatory review underway in China. However, Clearside Biomedical is facing significant financial challenges, leading to strategic shifts. Chardan Capital Markets has downgraded Clearside’s stock from Buy to Neutral, citing the company’s exploration of strategic alternatives such as mergers or acquisitions. Similarly, Stifel has downgraded the stock to Hold, highlighting severe financial constraints and a reduced price target from $8.00 to $2.00. The company has paused its research and development programs, including the promising CLS-AX treatment for wet age-related macular degeneration. Citizens JMP also downgraded Clearside’s stock rating to Market Perform, following the halt in R&D due to insufficient capital for further development. These developments indicate a period of transition and uncertainty for Clearside Biomedical as it navigates its financial and strategic options.
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