Scholar Rock Secures $50 million Debt Facility with Silicon Valley Bank and Oxford Finance
19 October 2020 - 10:30PM
Business Wire
Scholar Rock (NASDAQ: SRRK), a clinical-stage biopharmaceutical
company focused on the treatment of serious diseases in which
protein growth factors play a fundamental role, today announced the
closing of a $50 million debt facility with Silicon Valley Bank and
Oxford Finance LLC, of which the first $25 million was funded at
closing. Scholar Rock intends to use the proceeds for general
corporate purposes, including the advancement of the Company’s
pipeline and for pre-commercialization preparations.
“This non-dilutive financing strengthens Scholar Rock’s balance
sheet as we advance our clinical programs and overall platform for
patients affected by a wide range of serious diseases, including
neuromuscular disorders, cancer, fibrosis, and anemia,” said Ted
Myles, CFO & Head of Business Operations of Scholar Rock.
“Importantly, this facility provides added financial and
operational flexibility as we head into important clinical
read-outs for SRK-015 in spinal muscular atrophy and SRK-181 in
immuno-oncology.”
Scholar Rock’s approach to discovering and developing growth
factor targeted drugs is fundamentally new and different from
traditional approaches,” stated Christopher A. Herr, Senior
Managing Director at Oxford Finance. “As the company looks towards
potential late-stage development with upcoming clinical data, we
are pleased to provide capital to support their vision of
developing novel medicines.”
“Scholar Rock is an innovative biopharma company that is
developing treatments for an array of diseases with high unmet
medical needs and we are excited to expand our relationship to
support their next phase of growth,” said Kate Walsh, Director of
Life Science and Healthcare at Silicon Valley Bank.
Under the terms of the debt facility, the second $25 million
tranche is available through December 31, 2021 upon dosing of the
first patient in a Phase 3 trial for SRK-015 and dosing of the
first patient in Part B of the DRAGON Phase 1 trial for SRK-181.
The debt facility will mature on May 1, 2025 and requires interest
only payments for the first two years.
About Scholar Rock
Scholar Rock is a clinical-stage biopharmaceutical company
focused on the discovery and development of innovative medicines
for the treatment of serious diseases in which signaling by protein
growth factors plays a fundamental role. Scholar Rock is creating a
pipeline of novel product candidates with the potential to
transform the lives of patients suffering from a wide range of
serious diseases, including neuromuscular disorders, cancer,
fibrosis and anemia. Scholar Rock’s approach to targeting the
molecular mechanisms of growth factor activation enabled it to
develop a proprietary platform for the discovery and development of
monoclonal antibodies that locally and selectively target these
signaling proteins at the cellular level. By developing product
candidates that act in the disease microenvironment, the Company
intends to avoid the historical challenges associated with
inhibiting growth factors for therapeutic effect. Scholar Rock
believes its focus on biologically validated growth factors may
facilitate a more efficient development path. For more information,
please visit www.ScholarRock.com or follow Scholar Rock on Twitter
(@ScholarRock) and LinkedIn
(https://www.linkedin.com/company/scholar-rock/).
Scholar Rock® is a registered trademark of Scholar Rock,
Inc.
Forward-Looking Statements
This press release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995, including, but not limited to, statements regarding Scholar
Rock’s future expectations, plans and prospects, including without
limitation, Scholar Rock’s expectations regarding its growth,
strategy, progress and timing of its clinical trials for SRK-015,
SRK-181, and other product candidates and its use of proceeds from
its debt facility. The use of words such as “may,” “might,” “will,”
“should,” “expect,” “plan,” “anticipate,” “believe,” “estimate,”
“project,” “intend,” “future,” “potential,” or “continue,” and
other similar expressions are intended to identify such
forward-looking statements. All such forward-looking statements are
based on management's current expectations of future events and are
subject to a number of risks and uncertainties that could cause
actual results to differ materially and adversely from those set
forth in or implied by such forward-looking statements. These risks
and uncertainties include changes in Scholar Rock’s ability to
provide the financial support, resources and expertise necessary to
identify and develop product candidates on the expected timeline,
the data generated from Scholar Rock’s nonclinical and preclinical
studies and clinical trials, and the impacts of public health
pandemics such as COVID-19 on business operations and expectations,
as well as those risks more fully discussed in the section entitled
"Risk Factors" in Scholar Rock’s Quarterly Report on Form 10-Q for
the quarter ended June 30, 2020, as well as discussions of
potential risks, uncertainties, and other important factors in
Scholar Rock’s subsequent filings with the Securities and Exchange
Commission. Any forward-looking statements represent Scholar Rock’s
views only as of today and should not be relied upon as
representing its views as of any subsequent date. All information
in this press release is as of the date of the release, and Scholar
Rock undertakes no duty to update this information unless required
by law.
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version on businesswire.com: https://www.businesswire.com/news/home/20201019005197/en/
Scholar Rock Contact: Investors/Media Catherine Hu
chu@scholarrock.com 917-601-1649
Media Contact: The Yates Network Kathryn Morris
kathryn@theyatesnetwork.com 914-204-6412
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