MeiraGTx Holdings plc (Nasdaq: MGTX) has entered into an agreement with Oberland Capital Management LLC for an investment of up to $400 million, according to a press release from the company.

The deal includes up to $375 million in non-dilutive capital structured as capped royalty payments on certain products, along with up to $25 million in equity investment.

An initial $135 million has been funded, consisting of $125 million in exchange for low single-digit royalties on included products and a $10 million equity investment. Additional tranches are structured as follows:

• $50 million available at the company's option tied to positive data readouts from the Phase 2 AQUAx2 study of AAV2-hAQP1 in 2027


• $50 million tied to regulatory approval of botaretigene sparoparvovec (bota-vec) in 2027


• $50 million tied to regulatory approval of AAV2-hAQP1 in 2028


• $100 million available upon mutual agreement for new products or business development


• Oberland Capital retains the right to purchase an additional $15 million in equity

Following regulatory approval, Oberland Capital is set to receive low single-digit capped royalties on net sales of AAV2-hAQP1, developed for grade 2/3 late radiation-induced xerostomia; bota-vec, for X-linked retinitis pigmentosa; and AAV-AIPL1, for LCA4.

The agreement includes provisions allowing MeiraGTx to buy back the entire funded royalty note at any time by paying specified amounts. Royalty payments are capped at a multiple of amounts funded.

"We are very pleased to partner with Oberland Capital as we move towards potential commercialization of our late-stage programs for XLRP and radiation-induced xerostomia," said Alexandria Forbes, Ph.D., president and chief executive officer of MeiraGTx.

Oberland Capital is a private investment firm founded in 2013 with assets under management exceeding $3.5 billion, focused on the global healthcare industry. Additional details are available in MeiraGTx's Current Report on Form 8-K filed with the U.S. Securities and Exchange Commission.