Aquestive Therapeutics Inc. (NASDAQ:AQST) Plans To Monetize Sunovion’s Oral APL-130277 Film Royalties

Aquestive Therapeutics Inc. (NASDAQ:AQST) has announced it is planning to advance the strategy if monetizing the expected royalties relate to the apomorphine sublingual fill APL-130277 of Sunovion Pharmaceuticals. The FDA approved the therapy for the treatment of motor fluctuations that are common with Parkinson’s disease patients.

FDA approval of apomorphine film clears path for its monetization

The company CEO and President Keith Kendall indicated that they are delighted to receive the anticipated approval from the FDA for the apomorphine sublingual film from Sunovion. He added that the approval is a validation of the importance of the PharmFilm based therapies that offer important unmet needs to some underserved populations of patients. Kendall said they are expecting the therapy to offer massive future royalty and company license revenues.

Already the company is meeting potential investors regarding the possible monetization of the royalty stream. The CEO confirmed that the company expects to receive around $50 million to $100 million from the monetization in the form of non-diluted capital as a one time or several transactions. However, the company is planning the monetization at the ideal time, depending on market conditions.

Based on projections and Aquestive’s current plans, the company is in a better position with its cash resources, and the proceeds from the monetization of the royalty stream will help boost the company’s capital runway beyond 2021.

Aquestive signed an agreement with Sunovion in 2016

In an SEC filing in 2016, the company disclosed that it had signed a licensing agreement with Sunovion, which at the time was called Cynapus Therapeutics. According to the terms of the agreement, Sunovion will grant Aquestive an exclusive global license with the option of sublicensing of particular intellectual property. The rights included the existing as well as future patent applications that cover oral films that contain apomorphine, APL-130277 for treating OFF episodes (motor fluctuations) in patients with Parkinson’s disease.

Aquestive has been advancing various last stage therapies for the treatment of CNS conditions as well as offer options to the standard of care therapies that are administered invasively.