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Fresh Tracks sells off remaining rights to excessive-sweating drug revenue

BOULDER — Fresh Tracks Therapeutics Inc. has amended its 2022 asset purchase agreement with Botanix Pharmaceuticals Ltd. to give Botanix future profits from the sale of its excessive-sweating drug.

Under the previous agreement, Fresh Tracks, previously called Brickell Biotech,received a $9 million upfront payment for rights to its excessive-sweating drug while maintaining the potential for another $168 million in future milestone payments. Now, it’s agreed to give up future paydays for a $8.25 million lump sum now.

Company leaders say the move will boost Fresh Tracks’ cash position as they explore strategic options for a merger or sale.

The 2022 rebrand of Fresh Tracks, which promoted a new CEO this year amid ongoing financial woes, occurred as the company sought to pivot away from drugs that combat excessive sweating toward treatments for autoimmune, inflammatory and other debilitating diseases. The sale of the rights to sofpironium bromide, the excessive-sweating drug, kickstarted that pivot.

“We are pleased to reach this agreement with Botanix, which we view as a win-win deal for all parties involved,” Fresh Tracks new CEO Andrew Sklawer said in a prepared statement. “After the board’s careful evaluation, it decided that the buyout is in the best interests of the company and its stockholders. This arrangement strengthens our financial position with non-equity-dilutive capital as we continue to explore and evaluate strategic options to maximize shareholder value.”

Fresh Tracks’ stock price ticked up last week on news of the rights sale, but never crossed the $1 threshold.

In early March, Fresh Tracks announced it had hired MTS Health Partners LP to explore its strategic options, which the company said could include “a financing, sale or licensing of assets, acquisition, merger, business combination, or other strategic transaction or series of related transactions.”

Source: BizWest