Phathom Pharmaceuticals Secures $200 Million Term Loan Facility from Hercules Capital
September 20 2021 - 7:00AM
Phathom Pharmaceuticals, Inc. (Nasdaq: PHAT), a late
clinical-stage biopharmaceutical company focused on developing and
commercializing novel treatments for gastrointestinal diseases,
today reported it has obtained a $200 million term loan facility
from Hercules Capital, Inc. (NYSE: HTGC), a leader in customized
debt financing for companies in life sciences and
technology-related markets. This additional capital further
strengthens Phathom’s balance sheet in advance of anticipated key
catalysts, including data from the pivotal PHALCON-EE Phase 3 trial
of vonoprazan for the treatment of erosive esophagitis in October
2021, data from the Phase 2 trial of vonoprazan for the treatment
of non-erosive reflux disease in the first quarter of 2022, and FDA
approval and commercial launch of vonoprazan-based regimens for the
treatment of H. pylori in the second half of 2022. This
non-dilutive financing extends Phathom’s projected cash runway to
mid-2023 based on the Company’s current operating plans.
“Vonoprazan has the potential to become the first innovative
treatment for patients with acid-related disorders approved in the
US in more than thirty years,” said Terrie Curran, President and
Chief Executive Officer of Phathom. “This non-dilutive $200 million
term loan facility significantly strengthens our balance sheet
ahead of vonoprazan’s potential US commercial launch and provides
Phathom with additional financial flexibility as we continue to
work to change the landscape for patients with gastrointestinal
diseases.”
“Hercules is proud to partner with Phathom ahead of several
important milestones as they advance their vonoprazan development
programs and prepare for a potential commercial launch,” said Bryan
Jadot, Senior Managing Director and Life Sciences Group Head at
Hercules Capital. “The substantial capital commitment from Hercules
aims to help Phathom deliver on their important mission to improve
the lives of people suffering from acid related gastrointestinal
diseases and reflects our dedication to financing promising life
science companies,” added Lake McGuire, Managing Director at
Hercules Capital.
Under the terms of the $200 million term loan facility, $100
million was drawn at closing, and an additional $100 million
becomes available in two tranches of $50 million each. The first
$50 million tranche becomes available upon the receipt of positive
data from the PHALCON-EE Phase 3 trial. The second $50 million
tranche becomes available upon the occurrence of both FDA approval
of a vonoprazan-based regimen for the treatment of H. pylori and
FDA acceptance of filing of a new drug application for vonoprazan
for the treatment of erosive esophagitis. Approximately $54 million
of the initial $100 million drawn down by the Company will be used
to pay off the principal of the Company’s existing outstanding term
loan. The new facility provides for an interest-only period of
three years, which is extendable based on the achievement of
certain regulatory milestones. The loan facility is secured by the
Company’s assets.
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 PhathomPhathom Pharmaceuticals is a
biopharmaceutical company focused on the development and
commercialization of novel treatments for gastrointestinal diseases
and disorders. Phathom has in-licensed the exclusive rights in the
United States, Europe, and Canada to vonoprazan, a novel potassium
competitive acid blocker (P-CAB) in late-stage development for the
treatment of acid-related disorders. For more information about
Phathom, visit the Company’s website at
www.phathompharma.com or follow the Company on social
media: LinkedIn at www.linkedin.com/company/phathompharma and
Twitter @PhathomPharma.
Forward Looking Statements
Phathom cautions you that statements contained in this press
release regarding matters that are not historical facts are
forward-looking statements. These statements are based on the
Company’s current beliefs and expectations. Such forward-looking
statements include, but are not limited to, statements regarding:
the potential acceptance and approval by the FDA of our NDAs for
vonoprazan; our plans to commercially launch vonoprazan in the
second half of 2022; and our anticipated cash runway. The inclusion
of forward-looking statements should not be regarded as a
representation by Phathom that any of its plans will be achieved.
Actual results may differ from those set forth in this press
release due to the risks and uncertainties inherent in Phathom’s
business, including, without limitation: the FDA may disagree that
the existing safety and efficacy data is sufficient to accept or
approve the NDAs; the inherent risks of clinical development of
vonoprazan; Phathom’s dependence on third parties in connection
with product manufacturing, research and preclinical and clinical
testing; regulatory developments in the United States and foreign
countries; unexpected adverse side effects or inadequate efficacy
of vonoprazan that may limit its development, regulatory approval
and/or commercialization, or may result in recalls or product
liability claims; Phathom’s ability to obtain and maintain
intellectual property protection for vonoprazan; Phathom’s ability
to comply with its license agreement with Takeda; Phathom’s ability
to maintain undisrupted business operations due to the COVID-19
coronavirus, including delaying or otherwise disrupting its
clinical trials, manufacturing and supply chain; and other risks
described in the Company’s prior press releases and the Company’s
filings with the Securities and Exchange Commission (SEC),
including under the heading “Risk Factors” in the Company’s Annual
Report on Form 10-K and any subsequent filings with the SEC. You
are cautioned not to place undue reliance on these forward-looking
statements, which speak only as of the date hereof, and Phathom
undertakes no obligation to update such statements to reflect
events that occur or circumstances that exist after the date
hereof. All forward-looking statements are qualified in their
entirety by this cautionary statement, which is made under the safe
harbor provisions of the Private Securities Litigation Reform Act
of 1995.
CONTACTSMedia Contact:Nick
Benedetto1-877-742-8466media@phathompharma.com
Investor Contact:Joe
Hand1-877-742-8466ir@phathompharma.com
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