Windtree Therapeutics Sells Cardiovascular Drug Assets to Seismic

Windtree Therapeutics, Inc. has finalized an agreement to sell its cardiovascular drug candidates to Seismic Pharmaceutical Holdings, LLC. This transaction allows Windtree to step back from the costs and risks associated with ongoing development while retaining a significant interest in any future successes of these assets.

Under the terms of the agreement, Seismic will acquire Windtree’s entire cardiovascular portfolio and take over the responsibility for their continued development. Windtree will receive 20 percent of any future milestone payments, royalty streams, or similar economic interests derived from the assets, including global commercial net revenues if the drugs gain approval and enter the market. Additionally, the agreement includes a contingent cash payment of $700,000, which Windtree will receive if Seismic raises at least $10,000,000 to fund development through a financing round.

Jed Latkin, Chief Executive Officer of Windtree, emphasized that this deal allows the company to reduce its financial burdens while still benefiting from potential future revenues. He stated, “This structure provides non-dilutive potential value through future proceeds and alleviates the need for Windtree to fund continued work on these assets.”

The cardiovascular drugs are aimed at treating acute heart failure, a medical condition responsible for millions of hospital admissions annually. In 2022, Windtree reported approximately 2.1 million hospitalizations in the United States and 2.7 million in the European Union attributed to this condition. The company believes that the global market for effective treatments for acute heart failure could reach billions of dollars, given the large patient population and the current lack of transformative therapies.

This agreement marks a significant strategic shift for Windtree as it seeks to monetize its past research while improving its balance sheet. For Seismic Pharmaceutical Holdings, the acquisition presents an opportunity to advance cardiovascular candidates in a field characterized by a high unmet medical need. Windtree is positioned to gain from this partnership if the development programs succeed.

By entering this agreement, both companies aim to address critical health challenges while navigating the complexities of drug development and commercialization.