Navidea Biopharmaceuticals has entered into an amendment with Cardinal Health 414, an affiliate of Cardinal Health, under which Cardinal Health paid Navidea $7.5 million in cash and Navidea waived its right to receive any contingent Milestone Payment. The cash payment will provide capital for Navidea’s Phase IIb and Phase III trials. The company terminated a letter of intent with Keystone Capital Partners and will continue to work with Keystone for future financing efforts. The amendment with Cardinal Health strengthens their partnership and supports growth goals related to LYMPHOSEEK®.
Navidea Biopharmaceuticals, Inc. (NYSE American: NAVB) (“Navidea” or the “Company”), a company focused on the development of precision immunodiagnostic agents and immunotherapeutics, today announced that on June 14, 2023 it entered into an amendment (the “Amendment”) to the Asset Purchase Agreement, dated November 23, 2016 (the “Purchase Agreement”), between the Company and Cardinal Health 414, LLC (“Cardinal Health 414”), an affiliate of Cardinal Health, Inc. (NYSE: CAH). Under the terms of the Amendment, Cardinal Health 414 paid the Company $7.5 million in cash on June 14, 2023 and the Company waived its right to receive any contingent Milestone Payment that might otherwise become due and payable under the Purchase Agreement. The cash payment from Cardinal Health 414 provides immediate capital for the Company’s Phase IIb (NAV3-32) and Phase III (NAV3-33) trials and related operations. Building on a history of partnership between the Company and Cardinal Health, the Amendment also aligns and supports growth goals related to LYMPHOSEEK® for both organizations.
Prior to entering into the Amendment with Cardinal Health 414, the Company and Keystone Capital Partners (“Keystone”) agreed to terminate the letter of intent between them which outlined the material terms of the Company’s proposed sale of the Milestone Payment to Keystone for $8 million. Supported by G2G Ventures as Executive Consultants, the Company determined that the Amendment with Cardinal Health 414 provided greater certainty of closing and accelerated funding without the inclusion of dilutive warrants. Keystone remains a trusted partner of the Company and is expected to continue to assist the Company in its future financing efforts. The powerful combination of accelerated funding, strategic partnership and continued capital access allows the Company to expand its clinical trial base while delivering shareholder value.
“The amendment with Cardinal Health and equity line from Keystone Partners offers immediate capital and continuing positive support for Navidea’s pioneering work,” said Dr. Jason Myers, Owner and Founder of G2G Ventures. “This is a great example of how a focused approach can drive the business forward, surface opportunities, strengthen relationships, and create shareholder return.”
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Source: BioSpace