WARRINGTON, PA — Windtree Therapeutics, Inc. (OTCID: WINT) said it has agreed to sell its cardiovascular drug candidates to Seismic Pharmaceutical Holdings, LLC, a private investment group, while retaining a long-term economic stake tied to the assets’ future success.
Under the agreement, Seismic will acquire the cardiovascular portfolio and assume responsibility for ongoing development. Windtree will be entitled to 20 percent of any future milestone payments, royalty streams, or similar economic interests generated by the assets, including global commercial net revenues if the drugs are approved and reach the market.
The transaction also includes a contingent cash payment to Windtree. If Seismic completes a financing round that generates at least $10,000,000 in gross proceeds to fund development, Windtree would receive $700,000 from those funds. In addition, Windtree will transfer certain cardiovascular development-related payables to Seismic, further reducing its near-term financial obligations.
Chief Executive Officer Jed Latkin said the deal allows Windtree to step away from the cost and risk of further development while preserving meaningful upside. He said the company believes the structure provides non-dilutive potential value through future proceeds and relieves Windtree of the need to fund continued work on the assets.
The drugs target acute heart failure, a condition that drives millions of hospital admissions each year. Windtree estimates there were approximately 2.1 million hospitalizations in the United States and 2.7 million in the European Union in 2022. The company has said it believes the global market opportunity for effective acute heart failure treatments runs into the billions of dollars, reflecting both the size of the patient population and the lack of transformative therapies.
For Windtree, the agreement represents a strategic shift toward monetizing past research while tightening its balance sheet. For Seismic Pharmaceutical Holdings, the acquisition provides a platform to advance cardiovascular candidates in an area of high unmet medical need, with Windtree positioned to benefit if the programs ultimately succeed.
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