SOUTH SAN FRANCISCO,
Oct. 2, 2019 /PRNewswire/
-- Rigel Pharmaceuticals, Inc. (Nasdaq: RIGL) today
announced that it has entered into a $60 million
term loan credit facility with MidCap Financial
("MidCap"). At closing, $10
million was funded to Rigel in an initial tranche.
The facility also gives Rigel the ability to access an
additional $50 million, of which
$40 million is subject to the
achievement of certain customary conditions.
"We are excited to have the support of MidCap as we
continue to grow our commercial business and pipeline,"
said Dean Schorno, Rigel's chief
financial officer. "This facility provides Rigel with the
flexibility to focus on our financial goals of reaching
profitability and creating value for our shareholders."
In addition, the company announced collaboration
payments totaling $9 million from the newly signed
agreements for fostamatinib commercialization in Canada and Israel with Medison Pharma, and a development
milestone payment from Aclaris Therapeutics related to a JAK
inhibitor licensed from Rigel.
"Medison Pharma is an excellent partner for fostamatinib in
Canada and Israel with proven
capabilities in commercializing highly innovative products," said
Raul Rodriguez, president and CEO of
Rigel. "Today we announced that we have added $19 million to our balance sheet and access to an
additional $50 million in
non-dilutive financing. We believe this highlights the strength of
our business strategy and the added value of our numerous
collaborations."
On October 1, 2019, Rigel entered
into exclusive commercialization license agreements with
Medison Pharma to commercialize fostamatinib in all potential
indications in Canada and
Israel. Under the terms of the
agreements, Rigel will receive an upfront payment of $5 million, which includes an advanced royalty
payment, with the potential for approximately $35 million in regulatory and commercial
milestones. In addition, the company will receive royalty
payments beginning at 30% of net sales after credit for the
advanced royalty payment is fulfilled.
On September 19, 2019, Rigel
received a $4 million development
milestone payment from Aclaris Therapeutics for the
achievement of a certain event in accordance with the Rigel and
Aclaris License and Collaboration Agreement dated August 27, 2015.
About Rigel (www.rigel.com)
Rigel
Pharmaceuticals, Inc., is a biotechnology company dedicated
to discovering, developing and providing novel small
molecule drugs that significantly improve the lives of patients
with immune and hematologic disorders, cancer and rare diseases.
Rigel's pioneering research focuses on signaling pathways that
are critical to disease mechanisms. The company's first FDA
approved product is TAVALISSE® (fostamatinib
disodium hexahydrate), the only oral spleen tyrosine kinase
(SYK) inhibitor, for the treatment of adult patients
with chronic immune thrombocytopenia who have had an
insufficient response to a previous treatment. Rigel's clinical
programs include a Phase 3 study of TAVALISSE in
warm autoimmune hemolytic anemia (AIHA) and a Phase 1
study of R835, a proprietary molecule from its
interleukin receptor associated kinase (IRAK) program. In addition,
Rigel has product candidates in clinical development with
partners BerGenBio ASA, Daiichi Sankyo, Aclaris
Therapeutics, and AstraZeneca.
Please see www.TAVALISSE.com for full Prescribing
Information.
About MidCap Financial
MidCap
Financial is a middle market-focused, specialty finance
firm that provides senior debt solutions to companies across
all industries. MidCap is headquartered in Bethesda, MD, with offices in Chicago and Los Angeles,
and provides a broad array of products intended to
finance growth and manage working capital. For more
information, visit www.midcapfinancial.com.
MidCap Financial refers to MidCap FinCo Designated Activity
Company, a private limited company domiciled in Ireland, and its subsidiaries,
including MidCap Financial Services, LLC. MidCap Financial
Services, LLC employs all personnel and provides sourcing, due
diligence and portfolio management services to MidCap FinCo
Designated Activity Company pursuant to a services agreement.
MidCap Financial is managed by Apollo Capital Management, L.P., a
subsidiary of Apollo Global Management (NYSE: APO), pursuant to an
investment management agreement.
Forward Looking Statements
This release contains
forward-looking statements relating to, among other things, the
statements concerning plans, projections and estimates regarding
the use of proceeds from the credit facility and the timing and
availability of additional tranches under the credit facility, as
well as the timing and prospects of payments from collaborations.
Any statements contained in this press release that are not
statement of historical fact may be deemed to be forward-looking
statements. Words such as "planned," "will," "may," "expect,"
"anticipate," and similar expressions are intended to identify
these forward-looking statements. These forward-looking statements
are based on Rigel's current expectations and inherently involve
significant risks and uncertainties. Actual results and the timing
of events could differ materially from those anticipated in such
forward looking statements as a result of these risks and
uncertainties, which include, without limitation, risks and
uncertainties associated with the commercialization and marketing
of TAVALISSE; risks that the FDA, EMA or other regulatory
authorities may make adverse decisions regarding fostamatinib;
risks that TAVALISSE clinical trials may not be predictive of
real-world results or of results in subsequent clinical trials;
risks that TAVALISSE may have unintended side effects, adverse
reactions or incidents of misuses; the availability of resources to
develop Rigel's product candidates; market competition; as well as
other risks detailed from time to time in Rigel's reports filed
with the Securities and Exchange Commission, including its
Quarterly Report on Form 10-Q for the quarter ended June 30, 2019. Rigel does not undertake any
obligation to update forward-looking statements and expressly
disclaims any obligation or undertaking to release publicly any
updates or revisions to any forward-looking statements contained
herein.
Contact: David Burke
Phone: 650.624.1232
Email: dburke@rigel.com
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SOURCE Rigel Pharmaceuticals, Inc.