Abeona Therapeutics Announces $50 Million Credit Facility
January 08 2024 - 7:30AM
Abeona Therapeutics Inc. (Nasdaq: ABEO) today announced that it has
entered into a $50 million credit facility with the Avenue Venture
Opportunities Fund, L.P. The credit agreement, which has a term of
three and a half years, includes a first tranche of $20 million at
closing, a second tranche of $10 million of committed capital, and
an additional accordion option to upsize the credit facility by an
additional $20 million upon satisfaction of certain terms and
conditions.
Proceeds from the facility are intended to
support the Company’s ongoing preparations for launch and
commercialization in anticipation of a potential approval for
marketing in the U.S. by the Food and Drug Administration (FDA) of
pz-cel (prademagene zamikeracel), Abeona’s investigational
autologous, COL7A1 gene-corrected epidermal sheets for the
treatment of patients with recessive dystrophic epidermolysis
bullosa (RDEB), and for general corporate purposes. The FDA has
accepted and granted Priority Review with a PDUFA target action
date of May 25, 2024 for the Biologics License Application for
pz-cel.
“We are excited to enter into this relationship
with Avenue Venture Fund and secure additional financial resources
to further support our launch and commercialization efforts for
pz-cel,” said Joe Vazzano, Chief Financial Officer of Abeona. “We
expect the proceeds from this term loan facility will meaningfully
extend Abeona’s cash runway even further beyond value creating
milestones, including the potential approval of pz-cel.”
A.G.P./Alliance Global Partners served as
financial advisor and sole lead arranger to the Company on this
transaction.
About Avenue Venture
OpportunitiesThe Avenue Venture Debt Fund seeks to provide
creative financing solutions to high-growth, venture capital-backed
technology and life science companies. The Avenue Venture Debt
Opportunities Fund focuses generally on companies within the
underserved segment of the market created by the widening financing
gap between commercial banks and larger debt funds. The Avenue
Venture Debt fund is part of the larger group of funds of Avenue
Capital Group. For additional information on Avenue Capital Group,
which is a global investment firm with assets estimated to be
approximately $12.6 billion as of November 30, 2023, visit
www.avenuecapital.com.
About Abeona Therapeutics
Abeona Therapeutics Inc. is a clinical-stage biopharmaceutical
company developing cell and gene therapies for serious diseases.
The U.S. FDA has accepted and granted Priority Review with a PDUFA
target action date of May 25, 2024 for the Biologics License
Application for pz-cel (prademagene zamikeracel), Abeona’s
investigational autologous, COL7A1 gene-corrected epidermal sheets
currently in development for recessive dystrophic epidermolysis
bullosa. The Company’s fully integrated cell and gene therapy cGMP
manufacturing facility served as the manufacturing site for pz-cel
used in its Phase 3 VIITAL™ trial, and is capable of supporting
commercial production of pz-cel upon FDA approval. The Company’s
development portfolio also features AAV-based gene therapies for
ophthalmic diseases with high unmet medical need. Abeona’s novel,
next-generation AAV capsids are being evaluated to improve tropism
profiles for a variety of devastating diseases. For more
information, visit www.abeonatherapeutics.com.
Forward-Looking Statements This
press release contains certain statements that are forward-looking
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, and that involve risks and uncertainties. We have
attempted to identify forward-looking statements by such
terminology as “may,” “will,” “believe,” “anticipate,” “expect,”
“intend,” “potential,” and similar words and expressions (as well
as other words or expressions referencing future events, conditions
or circumstances), which constitute and are intended to identify
forward-looking statements. Actual results may differ materially
from those indicated by such forward-looking statements as a result
of various important factors, numerous risks and uncertainties,
including but not limited to, the timing and outcome of our
Biologics License Application submission to the FDA for pz-cel; the
FDA’s grant of a Priority Review Voucher; continued interest in our
rare disease portfolio; our ability to enroll patients in clinical
trials; the outcome of future meetings with the FDA or other
regulatory agencies, including those relating to preclinical
programs; the ability to achieve or obtain necessary regulatory
approvals; the impact of any changes in the financial markets and
global economic conditions; risks associated with data analysis and
reporting; and other risks disclosed in the Company’s most recent
Annual Report on Form 10-K and subsequent periodic reports filed
with the Securities and Exchange Commission. The Company undertakes
no obligation to revise the forward-looking statements or to update
them to reflect events or circumstances occurring after the date of
this press release, whether as a result of new information, future
developments or otherwise, except as required by the federal
securities laws.
Investor and Media Contact:
Greg Gin
VP, Investor Relations and Corporate Communications
Abeona Therapeutics
ir@abeonatherapeutics.com
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