- Narcan is the only FDA approved, intranasal Naloxone product for the treatment of opioid overdose
- Narcan is appropriately priced with revenue growth due to a differentiated nasal dosing and expanded distribution, not price hikes
- Opiant is a publicly traded drug development company that receives a royalty on Narcan for developing the drug’s unique formulation
- Opiant needed both capital to pursue development programs and a solution that would address its negative shareholder’s equity balance so that it could uplist to Nasdaq
- At time of monetization, Opiant was a thinly traded OTC stock and management believed the share price did not reflect underlying asset value, thus a share offering was not an attractive option
- SWK structured a capped royalty that was smaller than competing proposals by larger royalty investors, and allowed Opiant to retain tail economics
- Transaction structured as a sale, allowing Opiant to achieve Nasdaq listing requirements and uplist
- In December 2016 SWK funded $13.8 million in exchange for a royalty that is capped at a 1.5x cash-on-cash return. In 2017 upon achieving sales milestones, SWK funded an additional $3.8 million under similar terms
- Narcan sales exceeded forecasts and the SWK cash-on-cash return cap was achieved in February 2018 with the majority of the royalty returning to Opiant
- SWK retains a residual royalty ranging from 5% to 10%
- In the twelve months post the transaction, Opiant uplisted to Nasdaq and its share price appreciated from $6.00 per share to $36.50 per share
