Clinical-stage immunotherapy company ImmunityBio Inc (NASDAQ: IBRX) announced on Tuesday that it has secured a substantial investment of up to USD320m from private investment firm Oberland Capital, comprising royalty financing and equity investment.

The transaction closed on 29 December 2023 and brings USD210m in gross proceeds. This funding, along with the USD530m from the founder, elevates the total capital raised in 2023 to USD850m.

Oberland Capital's investment includes a USD300m non-dilutive Revenue Interest Purchase Agreement (RIPA), of which USD200m was funded initially, and an additional USD100m is contingent upon FDA approval of ImmunityBio's Biologics License Application (BLA) for Anktiva in combination with BCG for BCG-unresponsive non-muscle invasive bladder cancer (NMIBC). The RIPA grants Oberland Capital tiered single-digit royalty payments on product net sales, capped at a multiple of their investment.

Jefferies LLC served as the exclusive financial advisor for this transaction. ImmunityBio plans to leverage the funds to accelerate commercialization efforts, expand its urological cancer pipeline, and support clinical trials, particularly for Anktiva (N-803).

ImmunityBio focuses on developing immunotherapy and cell therapy platforms to activate the innate and adaptive immune system for cancer and infectious disease treatment. The company anticipates potential FDA approval for Anktiva in April 2024.

Oberland Capital, with approximately USD3.5bn in assets under management, specialises in flexible healthcare industry investments, including monetising royalty streams and project-based financing structures.