Windtree Therapeutics WINT has announced a significant agreement with affiliates of biopharma investor Deerfield Management Company, leading to the full retirement of a $15 million contingent liability. This liability had been associated with Windtree’s Aerosurf®, a drug and device combination treatment for premature infants with respiratory distress syndrome.
Enhanced Financial Fortitude
In return for Deerfield terminating its rights to receive any milestone payments, Windtree has agreed to issue Deerfield 608,272 shares of its common stock and to make a $100,000 cash payment upon execution of the agreement. Additionally, Windtree committed to paying Deerfield an additional $100,000 on the earlier of (i) January 24, 2025, or (ii) the receipt of a specified amount of gross proceeds from debt or equity financings occurring on or after the agreement date.
Strategic Momentum and Clinical Advancements
Following the successful completion of a positive phase 2 study on istaroxime, a potential treatment for early cardiogenic shock, Windtree has shown marked progress. The study demonstrated improvements in both blood pressure and cardiac function, addressing a critical unmet medical need. Windtree is now positioned to move its cardiogenic shock development program for istaroxime to phase 3 readiness in 2024, after starting a small extension study for dose optimization and initiating start-up activity in a second small phase 2 study with cardiogenic shock patients one stage more severe called SCAI Stage C.
Anticipated Developments and Continued Innovation
The company’s lead asset, istaroxime, is also making headway in two ongoing clinical trials in cardiogenic shock. Windtree recently entered into a new regional license with Lee’s Pharmaceuticals, aiming to initiate Phase 3 work in acute heart failure and potentially provide non-dilutive revenue. Additionally, Windtree has significantly reduced its cash burn rate since the second half of 2022, fortifying its financial position and expediting its growth initiatives.
