Insmed Secures $20 Million With Hercules Technology Growth Capital
Monday, July 02, 2012
Insmed Incorporated, a biopharmaceutical company focused on developing inhaled therapeutics for serious diseases of the lung, announced that it has entered into a loan agreement with Hercules Technology Growth Capital, Inc, a provider in customized debt financing for companies in life sciences and technology-related markets. Hercules will provide Insmed with access to a term loan of up to $20 million.
"We project that this loan agreement will extend our cash runway well into 2014," said Timothy Whitten, president and CEO of Insmed. "Our focus remains on the timely generation of top-line data from our three prioritized ARIKACEŽ studies, the CLEAR-108 phase 3 study in cystic fibrosis patients who have pseudomonas lung infections, the TARGET-NTM phase 2 clinical trial for patients who have non-TB Mycobacteria lung infections and the nine month dog toxicity study, all of which are expected to be announced over the course of 2013 as previously outlined."
The first $10 million of the term loan was funded at closing, and is repayable in installments over 42 months including an initial interest-only period of twelve months after closing. The interest only period is extendable to December 31, 2013, contingent upon completion of certain ARIKACE-related development milestones. Pursuant to the loan agreement, Insmed issued Hercules a warrant to purchase 329,932 shares of Insmed common stock at an exercise price of $2.94 per share. The remaining $10 million of the term loan is available at Insmed's option throughout the availability period, which ends on December 31, 2012.
Insmed Incorporated is a biopharmaceutical company focused on the development of innovative inhaled pharmaceuticals for the site-specific treatment of serious lung diseases.
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