Cancer-Focused Nanobiotix Adjusts $2.7 Billion Johnson & Johnson Agreement To Strengthen Finances And Relieve Funding Burden

On Monday, Nanobiotix SA NBTX announced an amendment to its global licensing agreement with Janssen Pharmaceutica NV, a Johnson & Johnson company JNJ, as part of its financial strategy.

The revision relieves Nanobiotix of funding obligations for its pivotal NANORAY-312 Phase 3 trial while modifying certain future milestone payments.

The company expects the changes to bolster its financial stability and extend its cash runway.

Under the revised agreement, Johnson & Johnson will assume nearly all remaining costs for NANORAY-312 through trial completion, with Nanobiotix covering only a small portion.

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This shift significantly reduces Nanobiotix's financial burden and allows the company to focus on advancing its clinical pipeline.

The overall deal value has been adjusted from approximately $2.7 billion to $2.6 billion, with a $105 million reduction in potential future milestone payments.

However, Nanobiotix remains eligible for substantial success-based payments, including up to $1.77 billion in development, regulatory and sales milestones for its first programs, such as cisplatin-ineligible head and neck cancer and unresectable stage 3 non-small cell lung cancer.

Additionally, Johnson & Johnson may develop up to five new indications at its discretion, potentially adding another $650 million in milestone payments.

Nanobiotix also retains eligibility for $165 million in milestone payments across China, South Korea, Singapore and Thailand. Furthermore, for each new indication developed under Nanobiotix's alignment with Johnson & Johnson, the company could earn up to $220 million in additional milestone payments. Tiered royalties in the low double-digit range, from the low teens to low 20s, remain unchanged.

Financially, the amended agreement extends Nanobiotix's cash runway to mid-2026, with efforts underway to secure additional financing—preferably non-dilutive—to extend it further into 2027.

The company also expects a significant reduction in operational cash burn, as the NANORAY-312 trial previously accounted for a major portion of its expenses.

Price Action: NBTX stock is up 4.48% at $3.50 during the premarket session at the last check Tuesday.

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