Phathom Pharmaceuticals, Inc. Secures $200 Million Term Loan Facility from Hercules Capital
September 20, 2021 at 08:00 am EDT
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Phathom Pharmaceuticals, Inc. reported it has obtained a $200 million term loan facility from Hercules Capital, Inc., 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. 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.
Phathom Pharmaceuticals, Inc. is a biopharmaceutical company. The Company is focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases. The Companyâs pipeline product candidate, VOQUEZNA, VOQUEZNA TRIPLE PAK, and VOQUEZNA DUAL PAK. Its product candidate, VOQUEZNA, contains vonoprazan, an oral small molecule potassium-competitive acid blocker (PCAB). PCABs are a novel class of medicines that block acid secretion in the stomach. Vonoprazan has also demonstrated clinical benefits in the treatment of erosive gastroesophageal reflux disease (erosive GERD), and in combination with antibiotics for the treatment of Helicobacter pylori (H. pylori) infection. GERD and H. pylori infection are two of the most common acid-related GI diseases. GERD is a disease that develops when the reflux of acidic stomach contents causes troublesome symptoms and/or complications. H. pylori is a bacterial pathogen.