Candel Therapeutics Secures $100M Royalty Financing From RTW To Launch Aglatimagene For Early Prostate Cancer Pending FDA Approval

Candel Therapeutics, Inc. (Candel), a clinical-stage biopharmaceutical company focused on developing multimodal biological immunotherapies to treat cancer, has announced a $100 million royalty funding agreement with funds managed by RTW Investments, LP. This funding arrangement is contingent upon FDA approval of aglatimagene for patients with intermediate- to high-risk, localized prostate cancer.

According to Paul Peter Tak, M.D., Ph.D., FMedSci, President and CEO of Candel, the agreement provides non-dilutive strategic financing that will support the planned U.S. launch of aglatimagene besadenovec, assuming FDA approval. He noted that the company is on track to submit its Biologics License Application (BLA) for aglatimagene in the fourth quarter of this year. Dr. Tak emphasized that Candel intends to work closely with the FDA to pursue an expedited review and approval process. He also highlighted the significance of this partnership in enabling Candel to further invest in what the company believes will be a world-class commercial program, offering a new treatment option for patients in the early stages of prostate cancer—a disease that has seen minimal innovation over the past two decades.

Roderick Wong, M.D., Managing Partner and Chief Investment Officer at RTW Investments, commented on the collaboration, noting that the pivotal Phase 3 clinical trial demonstrated the potential of aglatimagene besadenovec in treating early, localized prostate cancer. He said that the funding commitment reflects RTW’s confidence in both Candel’s management team and the commercial potential of this therapy. Dr. Wong added that RTW is proud to partner with Candel to support efforts in bringing this meaningful treatment to patients.

Under the terms of the agreement, the commercial launch royalty financing will become available once aglatimagene receives FDA approval and other customary conditions are satisfied. RTW will receive a tiered, single-digit percentage of annual net sales of aglatimagene in the United States, with an overall cap on the total royalties. This financing structure provides Candel with a non-dilutive source of capital to support the anticipated launch and commercialization of aglatimagene while maintaining shareholder value.