BioCryst Strengthens Cash Position With Flexible $100 Million Debt Facility
06 February 2019 - 11:00PM
—New loan facility increases to $50
million to further extend cash runway—
BioCryst Pharmaceuticals, Inc. (Nasdaq:BCRX) announced today that
the company has entered into a $100 million secured loan facility
(new loan facility) with MidCap Financial Trust (MidCap) pursuant
to the terms and conditions of an amended and restated credit and
security agreement.
The new loan facility replaces an existing $30
million secured loan facility with MidCap, provides $20 million of
immediate additional non-dilutive capital to extend the company’s
cash runway and provides financial flexibility to draw another $50
million of milestone-based non-dilutive capital at the company’s
option.
“This non-dilutive financing provides BioCryst
with significant additional financial flexibility, at our
discretion, as we move through the topline BCX7353 APeX-2 data
readout, NDA filing and our launch preparations,” said Tom Staab,
chief financial officer of BioCryst.
Under the terms and conditions of the amended
and restated credit and security agreement, BioCryst immediately
accesses $50 million of the new loan facility, adding $20 million
of non-dilutive cash.
An additional $30 million is available to
BioCryst, at the company’s option, following positive data from
APeX-2 that is sufficient to file a new drug application (NDA). To
achieve this milestone, BioCryst must publicly announce its
intention to file an NDA with the U.S. Food and Drug Administration
(FDA) based on data which meets the primary endpoint on at least
one dose level in APeX-2. BioCryst plans to report topline 24-week
safety and efficacy data from the APeX-2 clinical trial in the
second quarter of 2019.
Upon FDA approval of BCX7353 for hereditary
angioedema (HAE) prophylaxis, BioCryst has the option to draw an
additional $20 million. BioCryst intends to file an NDA for BCX7353
by the end of 2019.
The terms of the new loan facility provide that
BioCryst will be in an interest-only payment period through June
2020, with straight-line principal payments for 30 months
commencing on July 1, 2020. The interest rate is consistent
with the existing loan facility and will be a variable interest
rate (LIBOR + 8%) with a LIBOR floor of 0.5%. At closing,
BioCryst received an additional $20 million of principal, paid
MidCap an origination fee of $350,000, an administrative fee of
approximately $90,000 and an $80,000 exit fee accrued under the
existing loan facility.
About BioCryst
Pharmaceuticals
BioCryst Pharmaceuticals discovers novel, oral
small-molecule medicines that treat rare diseases in which
significant unmet medical needs exist and an enzyme plays a key
role in the biological pathway of the disease. BioCryst has several
ongoing development programs including BCX7353, an oral treatment
for hereditary angioedema, galidesivir, a potential treatment for
Marburg virus disease and Yellow Fever, and a preclinical program
to develop oral ALK-2 inhibitors for the treatment of
fibrodysplasia ossificans progressiva. RAPIVAB® (peramivir
injection), a viral neuraminidase inhibitor for the treatment of
influenza, is BioCryst's first approved product and has received
regulatory approval in the U.S., Canada, Australia, Japan, Taiwan,
Korea and the European Union. Post-marketing commitments for
RAPIVAB are ongoing. For more information, please visit the
Company's website at www.BioCryst.com.
Forward-Looking Statements
This press release contains forward-looking
statements, including statements regarding future results,
performance or achievements. These statements involve known and
unknown risks, uncertainties and other factors which may cause
BioCryst’s actual results, performance or achievements to be
materially different from any future results, performances or
achievements expressed or implied by the forward-looking
statements. These statements reflect our current views with respect
to future events and are based on assumptions and are subject to
risks and uncertainties. Given these uncertainties, you should not
place undue reliance on these forward-looking statements. Some of
the factors that could affect the forward-looking statements
contained herein include: Our Credit Agreement contains
restrictions that limit our flexibility in operating our business;
these restrictions could cause us to be unable to pursue business
opportunities that we or our stockholders may consider beneficial
without the lender’s permission or without repaying all Credit
Agreement obligations; the funding of future tranches requires
satisfaction of additional conditions and may not be available as
expected. Please refer to the documents BioCryst files periodically
with the Securities and Exchange Commission, specifically
BioCryst’s most recent Annual Report on Form 10-K, Quarterly
Reports on Form 10-Q, and Current Reports on Form 8-K, all of which
identify important factors that could cause the actual results to
differ materially from those contained in BioCryst’s projections
and forward-looking statements.
BCRXW
Contact:John Bluth+1 919 859
7910jbluth@biocryst.com
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