ImmunoGen Announces Non-Dilutive Term Loan Financing for Up to $175 Million with Pharmakon Advisors
April 06 2023 - 6:30AM
Business Wire
ImmunoGen to Receive $75 Million Upon Execution of the
Agreement; Eligible to Receive up to an Additional $100 Million in
Near-Term Proceeds
ImmunoGen, Inc. (Nasdaq: IMGN), a leader in the expanding field
of antibody-drug conjugates (ADCs) for the treatment of cancer,
today announced it has entered into a term loan financing facility
for up to $175 million with entities managed by Pharmakon Advisors,
LP ("Pharmakon"). Proceeds from the agreement will strengthen
ImmunoGen's balance sheet and provide the Company with additional
capital to support its growth trajectory.
Under the terms of the agreement, the loan facility will be
available to ImmunoGen in two tranches. The initial tranche of $75
million will be drawn upon execution; the second tranche of $50
million will be available at the Company's option upon achievement
of positive top-line data from its confirmatory MIRASOL trial and a
net sales threshold for ELAHERE™ (mirvetuximab soravtansine-gynx).
This tranche may be increased to $100 million upon mutual agreement
of the parties. The facility will mature five years from initial
funding; payments will be interest-only during the first 36 months,
with an extension of 12 months if certain conditions are met, after
which ratable principal payments will commence for the remainder of
the loan. Interest will accrue at the three-month Secured Overnight
Financing Rate, subject to a 2.75% floor, plus 8.00% per annum.
"Our agreement with Pharmakon strengthens our financial position
as we execute against our strategic priorities, including
accelerating the launch of ELAHERE and investing in our pipeline of
next-generation ADCs," said Mark Enyedy, ImmunoGen's President and
Chief Executive Officer. "Pharmakon is a well-respected partner to
innovative biotechnology companies, and we look forward to
utilizing the non-dilutive capital from this agreement to advance
the business and drive value for our shareholders as a commercial
oncology company."
"We are pleased to support ImmunoGen and this investment
illustrates our confidence in the Company's ability to successfully
commercialize ELAHERE while progressing the development of its
earlier-stage assets and delivering on its mission to offer more
good days to patients," said Martin Friedman, Pharmakon Managing
Member.
Goldman Sachs & Co. LLC served as financial advisor to
ImmunoGen on the transaction.
ABOUT IMMUNOGEN
ImmunoGen is developing the next generation of antibody-drug
conjugates (ADCs) to improve outcomes for cancer patients. By
generating targeted therapies with enhanced anti-tumor activity and
favorable tolerability profiles, we aim to disrupt the progression
of cancer and offer our patients more good days. We call this our
commitment to TARGET A BETTER NOW™.
Learn more about who we are, what we do, and how we do it at
www.immunogen.com.
ABOUT ELAHERE (MIRVETUXIMAB SORAVTANSINE-GYNX)
ELAHERE (mirvetuximab soravtansine-gynx) is a first-in-class ADC
comprising a folate receptor alpha-binding antibody, cleavable
linker, and the maytansinoid payload DM4, a potent tubulin
inhibitor designed to kill the targeted cancer cells. Please see
full Prescribing Information, including a Boxed Warning, for
ELAHERE here.
ABOUT PHARMAKON ADVISORS
Pharmakon Advisors, LP is a leading investor in non-dilutive
debt for the life sciences industry and is the investment manager
of the BioPharma Credit funds. Established in 2009, funds managed
by Pharmakon Advisors have committed $6.7 billion across 48
investments. For more information, please visit
www.pharmakonadvisors.com.
FORWARD-LOOKING STATEMENTS
This press release includes forward-looking statements. These
statements include, but are not limited to, ImmunoGen's
expectations related to the timing and presentation of clinical
data from the MIRASOL trial; and the Company's business and product
development strategies. Various factors could cause ImmunoGen's
actual results to differ materially from those discussed or implied
in the forward-looking statements, and you are cautioned not to
place undue reliance on these forward-looking statements, which are
current only as of the date of this release. Factors that could
cause future results to differ materially from such expectations
include, but are not limited to: the timing and outcome of the
Company's preclinical and clinical development processes; the
results of the ongoing MIRASOL trial may fail to support full
approval of ELAHERE and, if not, additional studies may be
required; the difficulties inherent in the development of novel
pharmaceuticals, including uncertainties as to the timing, expense,
and results of preclinical studies, clinical trials, and regulatory
processes; the timing and outcome of the Company's anticipated
interactions with regulatory authorities; the risk that we may not
be able to obtain adequate price and reimbursement for any approved
products, including the potential for delays or additional
difficulties for ELAHERE in light of the FDA granting accelerated
approval; risks and uncertainties associated with the scale and
duration of the COVID-19 pandemic and the resulting impact on
ImmunoGen's industry and business; and other factors as set forth
in the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 1, 2023 and other
reports filed with the Securities and Exchange Commission. The
forward-looking statements in this press release speak only as of
the date of this press release. We undertake no obligation to
update any forward-looking statement, whether as a result of new
information, future developments, or otherwise, except as may be
required by applicable law.
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version on businesswire.com: https://www.businesswire.com/news/home/20230405005796/en/
INVESTOR RELATIONS CONTACT ImmunoGen Anabel Chan
781-895-0600 anabel.chan@immunogen.com MEDIA CONTACTS
ImmunoGen Courtney O'Konek 781-895-0600
courtney.okonek@immunogen.com OR FTI Consulting Robert Stanislaro
212-850-5657 robert.stanislaro@fticonsulting.com
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