Arcutis Biotherapeutics Secures $225 Million in Non-Dilutive Debt Financing from SLR Capital Partners
24 December 2021 - 12:00AM
Arcutis Biotherapeutics, Inc. (Nasdaq: ARQT), a late-stage
biopharmaceutical company focused on developing meaningful
innovations in immuno-dermatology, today announced that it has
obtained a $225 million term loan facility from funds managed by
SLR Capital Partners (“SLR”). This additional capital further
strengthens Arcutis’ balance sheet in advance of a potential 2022
Food and Drug Administration (FDA) approval and launch of topical
roflumilast cream in plaque psoriasis, and in advance of three 2022
pivotal clinical data readouts in atopic dermatitis, seborrheic
dermatitis, and scalp psoriasis. This non-dilutive financing
commitment extends the Company’s cash runway into 2024.
“We are delighted to have SLR Capital Partners with us ahead of
a transformative year for Arcutis,” said Frank Watanabe, President
and CEO of Arcutis. “This additional financing further strengthens
our balance sheet at an attractive cost of capital and provides us
with enhanced financial flexibility as we prepare for the potential
launch of roflumilast cream in 2022, while simultaneously advancing
our product candidates through multiple late-stage clinical trials,
furthering our mission of bringing innovative treatments to
dermatologists and millions of patients with serious skin
diseases.”
“SLR is excited to be a long-term partner with Arcutis as they
advance topical roflumilast in a number of pivotal Phase 3
development programs and prepare for a commercial launch,” said
Anthony Storino, Head of Life Science Finance at SLR. “We believe
topical roflumilast has the potential to transform the standard of
care across numerous dermatological conditions, and this
significant commitment of capital represents that belief and our
commitment to financing life sciences companies across all stages
of development.”
Under the terms of this loan facility, $75 million was drawn at
closing, and an additional $125 million becomes available upon FDA
approval of roflumilast cream for the treatment of plaque
psoriasis. An additional $25 million is also available if certain
revenue milestones are achieved. The loan facility maturity date is
January 2027, with the interest-only period extending for the
entire five years. The loan facility is secured by the Company’s
assets.
J. Wood Capital Advisors LLC acted as financial advisor to
Arcutis, and Latham & Watkins LLP acted as legal counsel to
Arcutis.
Further details with respect to the debt financing agreement
will be filed with the Securities and Exchange Commission on a
Current Report on Form 8-K.About SLR Capital
PartnersSLR Capital Partners, LLC (“SLR Capital
Partners”) is an SEC-registered investment adviser that
primarily invests directly in leveraged, U.S. middle
market companies in the form of cash flow and asset-based senior
secured investments. SLR Capital Partners manages
over $8 billion of investable capital, including serving
as the investment adviser to two publicly-traded business
development companies, SLR Investment Corp. and SLR Senior
Investment Corp. The SLR Capital Partners life science finance
business provides financing solutions for later-stage bio-pharma,
medical device, diagnostics, healthcare IT and healthcare services
companies, both venture-backed private and public, and from
pre-revenue clinical to early commercial stage. For more
information, please
visit https://www.slrcapitalpartners.com/Financial-Solutions/Life-Science-Finance
About ArcutisArcutis Biotherapeutics, Inc.
(Nasdaq: ARQT) is a medical dermatology company that champions
meaningful innovation to address the urgent needs of patients
living with immune-mediated dermatological diseases and conditions.
With a commitment to solving the most persistent patient challenges
in dermatology, Arcutis harnesses our unique dermatology
development platform coupled with our dermatology expertise to
build differentiated therapies against biologically validated
targets. Arcutis’ dermatology development platform includes a
robust pipeline with multiple clinical programs for a range of
inflammatory dermatological conditions, with one NDA under review
with the FDA and three Phase 3 clinical data readouts anticipated
by the end of 2022. The company’s lead program, topical
roflumilast, has the potential to advance the standard of care for
plaque psoriasis, atopic dermatitis, scalp psoriasis, and
seborrheic dermatitis. For more information,
visit www.arcutis.com or follow Arcutis on LinkedIn and
Twitter.
Forward-Looking StatementsThis press release
contains "forward-looking" statements, including, among others,
statements regarding the potential for roflumilast to be approved
for the treatment of adults and adolescents with plaque psoriasis,
the potential to use roflumilast cream over a long period of time,
or chronically, the potential to use roflumilast cream anywhere on
the body, including the face and sensitive intertriginous areas,
the potential for roflumilast to advance the standard of care in
plaque psoriasis and other inflammatory dermatological conditions,
the timing of the potential commercial launch for roflumilast cream
and the anticipated extension of the Company’s cash runway. These
statements involve substantial known and unknown risks,
uncertainties and other factors that may cause our actual results,
levels of activity, performance, or achievements to be materially
different from the information expressed or implied by these
forward-looking statements and you should not place undue reliance
on our forward-looking statements. Risks and uncertainties that may
cause our actual results to differ include risks inherent in the
clinical development process and regulatory approval process, the
timing of regulatory filings, and our ability to defend our
intellectual property. For a further description of the risks and
uncertainties applicable to our business, see the "Risk Factors"
section of our Form 10-K filed with U.S. Securities and Exchange
Commission (SEC) on February 16, 2021, as well as our subsequent
filings with the SEC. We undertake no obligation to revise or
update information herein to reflect events or circumstances in the
future, even if new information becomes available.
Contacts:MediaAmanda Sheldon,
Head of Corporate Communicationsasheldon@arcutis.com
InvestorsEric McIntyre, Head of Investor
Relationsemcintyre@arcutis.com
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