Replimune Secures $200 Million in Non-Dilutive Debt Financing from Hercules Capital, Inc.
October 07 2022 - 8:00AM
Replimune Group, Inc. (NASDAQ: REPL), a clinical stage
biotechnology company pioneering the development of a novel class
of tumor-directed oncolytic immunotherapies, today announced that
it has obtained a $200 million non-dilutive term loan facility from
Hercules Capital, Inc. (NYSE:HTGC), a leader in customized debt
financing for companies in the life sciences and technology-related
markets. This non-dilutive capital extends cash runway into 2025
ahead of key catalysts from the Company’s registration-directed
CERPASS and IGNYTE trials in cutaneous squamous cell carcinoma
(CSCC) and anti-PD1 failed melanoma inclusive of the costs of
funding commercial infrastructure and the running of a confirmatory
study to support a potential BLA filing in anti-PD1 failed
melanoma.
“This non-dilutive financing option provides Replimune with
significant flexibility as we prepare for key RP1 skin franchise
data catalysts and related commercial preparations of our novel
tumor-directed oncolytic immunotherapies as well as the advancement
of RP2/3 into Phase 2 studies,” said Jean Franchi, Chief Financial
Officer of Replimune. “Not only does this non-dilutive financing
strengthen what we believe to be an already strong financial
position, it creates optionality in future capital formation and
enables us to choose when, and to what extent, we access available
funding in order to help manage future cost of capital and
dilution.”
“Hercules strives to align with some of the best and brightest
companies in the life sciences industry to provide them with
long-term capital commitments to help them achieve their ambitious
goals. We are excited to collaborate with Replimune and their team
ahead of numerous data, regulatory, and commercial milestones,”
said Bryan Jadot, Senior Managing Director and Group Head at
Hercules Capital.
The loan facility consists of up to six tranches, five of which
can be drawn at Replimune’s option and each maturing in October
2027. The loan facility provides for at least 48-months of
interest-only at close, which interest-only period can be extended
up to 60 months upon satisfaction of certain milestones. An
initial $30 million tranche was funded at closing with an
additional $30 million available to be drawn at Replimune’s option
prior to September 30, 2023. An additional $115 million is
available subject to the Company’s achievement of specified
performance milestones relating to clinical, regulatory, and
commercial events. The final $25 million tranche is available for
draw, at Replimune’s option and subject to Hercules consent during
the interest-only period.
Armentum Partners acted as the Company’s exclusive financial
advisor on this transaction.
Additional details of the loan agreement will be filed with the
Securities and Exchange Commission on a Current Report on Form
8-K.
About Replimune Replimune Group, Inc.,
headquartered in Woburn, MA, was founded in 2015 with the mission
to transform cancer treatment by pioneering the development of
novel tumor-directed oncolytic immunotherapies. Replimune’s
proprietary RPx platform is based on a potent HSV-1 backbone with
payloads added to maximize immunogenic cell death and the induction
of a systemic anti-tumor immune response. The RPx platform has a
unique dual local and systemic mechanism of action (MOA) consisting
of direct selective virus-mediated killing of the tumor resulting
in the release of tumor derived antigens and altering of the tumor
microenvironment (TME) to ignite a strong and durable systemic
response. This MOA is expected to be synergistic with most
established and experimental cancer treatment modalities, and, with
an attractive safety profile the RPx platform has the versatility
to be developed alone or combined with a variety of other treatment
options. For more information, please visit www.replimune.com.
Forward-Looking
StatementsThis press release contains
forward-looking statements within the meaning of Section 27A of the
Securities Act of 1933, as amended, and Section 21E of the
Securities Exchange Act of 1934, as amended, including statements
regarding the strength of our financial position, our expectations
about our cash runway, the design and advancement of our clinical
trials, the timing and sufficiency of our clinical trial outcomes
to support potential approval of any of our product candidates, our
goals to develop and commercialize our product candidates, patient
enrollments in our existing and planned clinical trials and the
timing thereof, and other statements identified by words such as
“could,” “expects,” “intends,” “may,” “plans,” “potential,”
“should,” “will,” “would,” or similar expressions and the negatives
of those terms. Forward-looking statements are not promises or
guarantees of future performance, and are subject to a variety of
risks and uncertainties, many of which are beyond our control, and
which could cause actual results to differ materially from those
contemplated in such forward-looking statements. These factors
include risks related to our limited operating history, our ability
to generate positive clinical trial results for our product
candidates, the costs and timing of operating our in-house
manufacturing facility, the timing and scope of regulatory
approvals, changes in laws and regulations to which we are subject,
competitive pressures, our ability to identify additional product
candidates, political and global macro factors including the impact
of the coronavirus as a global pandemic and related public health
issues, and other risks as may be detailed from time to time in our
Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q and
other reports we file with the Securities and Exchange Commission.
Our actual results could differ materially from the results
described in or implied by such forward-looking statements.
Forward-looking statements speak only as of the date hereof, and,
except as required by law, we undertake no obligation to update or
revise these forward-looking statements.
Investor Inquiries Chris BrinzeyICR
Westwicke339.970.2843chris.brinzey@westwicke.com
Media InquiriesLissette SteeleVerge Scientific
Communications202.930.4762 x
409lsteele@vergescientific.com
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jun 2024 to Jul 2024
Hercules Capital (NYSE:HTGC)
Historical Stock Chart
From Jul 2023 to Jul 2024