Clovis Oncology Enters into Clinical Trial Financing Facility with TPG Sixth Street Partners

May 9, 2019

Willkie represented biopharmaceutical company Clovis Oncology, Inc. in a unique clinical trial financing facility for up to $175 million.

On May 2, Willkie client Clovis Oncology, Inc. (NASDAQ: CLVS) announced that it has entered into a clinical trial financing facility with certain affiliates of TPG Sixth Street Partners to cover Clovis’ costs and expenses related to its ATHENA clinical trial in an amount up to $175 million. ATHENA is Clovis Oncology’s Phase 3 trial in advanced ovarian cancer evaluating its product Rubraca (rucaparib) in combination with nivolumab (PD-1 inhibitor) with a planned target enrollment of 1000 patients across more than 270 sites in at least 25 countries.

Under the terms of the Financing Agreement, Clovis is expected to borrow from the lenders amounts required to reimburse its actual expenses incurred during each fiscal quarter (limited to agreed budgeted amounts), as such expenses are incurred, related to the ATHENA trial, and Clovis has agreed to repay these borrowed amounts together with a return to the lenders, from revenues generated from sales and out-licensing fees related to Rubraca. Repayment would not begin until the earliest to occur of (i) termination of the ATHENA Trial, (ii) the approval by the FDA of an indication for Rubraca resulting from the ATHENA trial and (iii) September 30, 2022.

Clovis Oncology is a biopharmaceutical company focused on acquiring, developing and commercializing innovative anti-cancer agents in the U.S., Europe and additional international markets.

The deal team included partners Thomas Mark, Jeffrey Goldfarb, Heather Schneider and Christopher Peters and UK partner Aymen Mahmoud.