Capricor Collaborates With Nippon Shinyaku For European Expansion Of Deramiocel For DMD; Stock Up

(RTTNews) - Capricor Therapeutics, Inc. (CAPR), Tuesday announced a deal with Japan-based Nippon Shinyaku Co., Ltd., to commercialize and distribute deramiocel in Europe, which is used for the treatment of Duchenne muscular dystrophy, a rare neuromuscular disease.

Under the deal, the company would receive $15 million equity investment at a 20 percent premium, as well as $20 million upfront payment upon signing definitive agreement with up to $715 million in potential milestones and a double-digit percentage of product revenue.

"With the addition of the upfront payment and equity investment, we will be able to extend our runway into 2026 and be well positioned to advance toward potential approval of deramiocel in the United States and beyond. Furthermore, these funds will provide necessary capital for commercial launch preparations, manufacturing scale-up and product development for Europe, as we envision high global demand for deramiocel," Linda Marban, Capricor's Chief Executive Officer.

Additionally, Nippon Shinyaku has also agreed to purchase around 2.8 million shares of common stock at a price of $5.36 per share, totaling to approximately $15 million. The offering is expected to close on or about September 20.

Currently, Capricor's stock is trading at $5.06, up 14.74 percent on the Nasdaq.