Viridian Therapeutics Secures Flexible Credit Facility for Up to $75 Million From Hercules Capital
05 April 2022 - 6:05AM
Viridian Therapeutics, Inc. (NASDAQ: VRDN), a biotechnology company
advancing new treatments for patients suffering from serious
diseases underserved by current therapies, today announced that the
Company has entered into a debt financing agreement
with Hercules Capital, Inc. (NYSE: HTGC) for up
to $75 million.
“Viridian started 2022 with a strong cash position of more than
$195 million in cash and investments. This credit facility further
increases our financial strength, providing the Company with
strategic and operational flexibility,” stated Kristian Humer,
Viridian Therapeutics’ Chief Financial and Business Officer. “We
anticipate transformational data from both VRDN-001 and VRDN-002
clinical programs in the next several quarters. We seek to progress
both programs into registrational trials as fast as possible. This
credit facility reduces our dependence on capital markets allowing
us to focus on executing a rapid and efficient registrational
program and our plans to deliver new options to patients suffering
with thyroid eye disease across broader settings of care than
currently approved therapies.”
Under the terms of the agreement, Viridian drew an initial $5
million at closing. An additional $20 million is available at the
Company’s request through June 15, 2023, with an additional $25
million available upon the Company’s achievement of certain
milestones, and the remaining $25 million available subject to
final lender approval. The Company is under no obligation to draw
funds in the future. The facility carries a single-digit cost of
capital.
“Hercules is pleased to enter into a strategic relationship with
Viridian as it advances its clinical stage programs,” stated Cristy
Barnes, Managing Director at Hercules Capital. “This capital
commitment from Hercules aims to help Viridian deliver new options
to patients suffering from thyroid eye disease and reflects our
dedication to provide customized financing solutions to
growth-stage life science companies.”
Viridian’s cash, cash equivalents and short-term investments
were $197 million as of December 31, 2021. Excluding this $75
million credit facility, the Company believes that its current
cash, cash equivalents and short-term investments will be
sufficient to fund its operations into 2024.
About Viridian Therapeutics
Viridian Therapeutics is a biotechnology company advancing
new treatments for patients suffering from serious diseases but
underserved by today’s therapies. Viridian’s most advanced program,
VRDN-001, is a differentiated monoclonal antibody targeting
insulin-like growth factor-1 receptor (IGF-1R), a clinically and
commercially validated target for the treatment of thyroid eye
disease (TED). Viridian’s second product candidate, VRDN-002, is a
distinct anti-IGF-1R antibody that incorporates half-life extension
technology and is designed to support administration as a
convenient, low-volume, subcutaneous injection. TED is a
debilitating autoimmune disease that causes inflammation and
fibrosis within the orbit of the eye which can cause double vision,
pain, and potential blindness. Patients with severe disease often
require multiple remedial surgeries to the orbit, eye muscles and
eyelids. Viridian is based in Waltham, Massachusetts.
Forward Looking Statements
This press release contains forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of
1995. These statements may be identified by the use of words such
as, but not limited to, "anticipate," "believe," "continue,"
"could," "estimate," "expect," "intend," "may," "might," "plan,"
"potential," "predict," "project," "should," "target," "will," or
"would" or other similar terms or expressions that concern our
expectations, plans and intentions. Forward-looking statements
include, without limitation, statements regarding the Company’s
expectations and guidance regarding its business plans and
objectives for its product candidates, expectations regarding
timing and positive results of data from the Company’s clinical
trials, expectations regarding the Company’s ability to quickly
commence registrational trials, and the sufficiency of the
Company’s financial position and its projected cash runway.
Forward-looking statements are neither historical facts nor
assurances of future performance. Instead, they are based on our
current beliefs, expectations, and assumptions. New risks and
uncertainties may emerge from time to time, and it is not possible
to predict all risks and uncertainties. No representations or
warranties (expressed or implied) are made about the accuracy of
any such forward-looking statements. Such forward-looking
statements are subject to a number of material risks and
uncertainties including but not limited to: uncertainty and
potential delays related to clinical drug development; the duration
and impact of regulatory delays in our clinical programs;
manufacturing risks; competition from other therapies or products;
other matters that could affect the sufficiency of existing cash,
cash equivalents and short-term investments to fund operations; the
Company’s future operating results and financial performance; the
timing of pre-clinical and clinical trial activities and reporting
results from same; the effects from the COVID-19 pandemic on the
Company’s research, development and business activities and
operating results, including those risks set forth under the
caption “Risk Factors” in our Annual Report on Form 10-K filed with
the Securities and Exchange Commission (SEC) on March 11, 2022 and
other subsequent disclosure documents filed with the SEC. Any
forward-looking statement speaks only as of the date on which it
was made. Neither we, nor our affiliates, advisors, or
representatives, undertake any obligation to publicly update or
revise any forward-looking statement, whether as a result of new
information, future events or otherwise, except as required by law.
These forward-looking statements should not be relied upon as
representing our views as of any date subsequent to the date
hereof.
Investor and Media Contact:John JordanViridian
TherapeuticsVice President, Investor Relations& Corporate
Communications617-272-4691IR@viridiantherapeutics.com
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