OPKO Health Secures $125 Million Financing Against Future Royalty Stream from Mazdutide
On August 13, OPKO Health (NASDAQ:OPK) issued an additional $125 million in senior secured notes through its financing relationship with KKR's HealthCare Royalty. The funding is backed by the royalty stream tied to mazdutide, a GLP-1 drug licensed to Eli Lilly and commercialized in China by Innovent Biologics. OPKO earns royalties on sales of this drug, which began generating revenue for the company in 2025. The financing structure allows total payments under the deal to be capped at 1.5 times what OPKO actually receives from mazdutide royalties. Once that cap is reached, OPKO retains full future economic benefits from the stream without issuing new shares. In Q2 2026, OPKO reported revenue of $163.5 million and a net loss of $8.4 million—a significant improvement over its prior-year performance—though diagnostics segment revenues declined due to asset sales. The company also continued stock buybacks during the quarter while maintaining strong cash reserves. However, short sellers hold 8.33% of OPKO's float, indicating market skepticism despite rising institutional ownership.
Tickers: $LLY
Topics: finance GLP-1 drugs M&A and partnerships pharmaceuticals