Atea Pharmaceuticals, a late-stage clinical biopharmaceutical company engaged in the discovery and development of oral antiviral therapeutics for serious viral diseases, entered into a credit facility agreement with Hercules Capital for up to $200 million. The facility strengthens Atea’s financial position and provides strategic and operational flexibility as the company expands its commercial-related activities in anticipation of the product launch of the regimen of bemnifosbuvir/ruzasvir (BEM/RZR) in the United States for the treatment of chronic hepatitis C virus (HCV), if approved, and advances the company’s clinical program for hepatitis E virus (HEV).
“Building on the positive Phase 3 C-BEYOND trial results for BEM/RZR in HCV, we expect several major milestones in 2027, including the topline results from our second Phase 3 trial, C-FORWARD, in early Q1 2027 and a planned new drug application (NDA) submission to the US Food and Drug Administration seeking marketing approval in mid-2027,” Jean-Pierre Sommadossi, founder and CEO of Atea Pharmaceuticals, said. “This non-dilutive financing enhances our financial flexibility, while preserving a disciplined approach to capital deployment, allowing us to access capital in alignment with our progress toward our goal of product launch of BEM/RZR in the US in 2028 and a path toward profitability.”
- Bryan Jadot, senior managing director and group head of life sciences at Hercules Capital, added, “Atea is approaching several important clinical and regulatory milestones led by its global Phase 3 HCV program. We are pleased to provide a flexible financing solution that supports the Company’s advancement and its efforts for the potential commercialization of BEM/RZR in the US market. We look forward to partnering with Atea as it advances its programs and prepares for future value-creating milestones.”
Under the agreement, Atea received $65 million at closing. The company may, at its option, have access to additional funding subject to the achievement of specified milestones and other terms and conditions of the agreement. This includes up to $35 million upon achievement of a clinical milestone, up to $70 million upon achievement of certain regulatory, financing and commercial milestones and an additional $30 million may be available upon the company’s request and in lenders’ sole discretion. The facility has a 60-month maturity including a 48-month interest-only period that may be extended to 60 months upon achievement of a specified commercial milestone.
As of June 30, 2026, Atea had cash, cash equivalents and investments of $219.5 million. Based on its current operating plan, Atea expects its current cash, cash equivalents and investments, together with the initial $65 million received under the facility, to fund planned operations into mid-2028. Additional borrowings under the facility, available only if the company meets the terms and conditions required to access such additional borrowings, could extend Atea’s cash runway potentially through profitability, assuming the successful commercial launch of BEM/RZR in the U.S. and based on the company’s current expectations regarding the timing and amount of the company’s future operating expenditures.
Morgan Stanley served as the exclusive financial advisor to Atea on the credit facility.
